Fly your family to the slopes by investing
in $25/week. adds up to $7380 in 5 years.
what is the annual interest rate? answer answer step by step in full detail

The annual rate of interest is 2.56%

Step-by-step explanation:

Given as :

Principal Amount investing every week = $25

Principal Amount investing in 5 years = $25 × 5 × 52 = p = $6500

The Amount adds after 5 years = A = $7380

Time period = t = 5 years

Let annual rate of interest = r %

Now, According to question

Amount after 5 years = Principal ×

Or, A = p ×

Or, $7380 = $6500 ×

Or, =

Or, 1.135 =

Or, = 1 +

Or, 1.0256 =  1 +

Or, 1.0256 - 1 =

Or, 0.0256 =

∴  r = 0.0256 × 100

i.e r = 2.56

So, The rate of interest = r = 2.56

Hence, The annual rate of interest is 2.56%  Answer

the answer is 8/21

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