In 2010 a man mailed a $400 check to another man to repay a $400 debt of his great great grandfather who died in 1849. a bank estimated interest on the loan to be $454 million dollars for the 155 years it was due. find the interest rate the bank was using assuming the interest is compounded annually.

9.41%

Step-by-step explanation:

Data provided in the question:

Present value of the debt = $400

Interest = $454 million = $454,000,000

Time, n = 155 years

Now,

Future value = Present value of the debt  + Interest

or

Future value = $400 + $454,000,000

or

Future value = $454,000,400

Also,

Using the compounding formula,

Future value = Present value × ( 1 + r )ⁿ

here,

r is the interest rate

Thus,

$454,000,400 = $400 × ( 1 + r )¹⁵⁵

or

( 1 + r )¹⁵⁵ = $454,000,400 ÷ $400

( 1 + r )¹⁵⁵ = 1,135,001

or

1 + r = 1.0941

or

r = 1.0941 - 1

or

r = 0.0941

or

r = 0.0941 × 100% = 9.41%

$655.61 which is option c

step-by-step explanation:

price of house =   $146,000

initial rate = 3.5%

mortgaged paid in this = 3.5 % of $146,000

                                        =

                                        =$5110

the total years would be = 7

total mortgaged paid = 7 * $5110

                                      =$35770

remaining money = $146000-35770

                                =$110230

new mortgaged payment = 5 % of 110230

                                            =  

                                            =$655.61

it is 10.6 according to my calculations