Raymond has an investment of $25 000 now,and in three years it will mature and pay Raymond $32 000.What is the approximate annual interest rate he will receive?
A)9)3 percent
B)8)6 percent
C)8)9 percent
D)Insufficient information to calculate this question

Question

Quizplus · Accepted Answer

The future value formula for compound interest is used: $FV = PV(1 + r)^n$. Here, $FV = 32000$, $PV = 25000$, and $n = 3$. Solving for $r$, we get approximately 8.6%.

Raymond Has an Investment of $25 000 Now,and in Three