Thread: help me please, finding interest rates

I need help with this problem please.

Find the annual rate of growth (interest rate) on an account that was worth $150 in 1972 and $540.53 in 1994.

Originally Posted by takkun0486

I need help with this problem please.

Find the annual rate of growth (interest rate) on an account that was worth $150 in 1972 and $540.53 in 1994.

Let the interest rate be , and the principal be then:
after 1 year you have:
after two years you have:
:
:
after years you have:

Now 1972 to 1994 is 22 years, so we have:



Which may be rewritten as:

,

or:



RonL