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Rate of interest

21. Tropical Tans is saving money to build a new salon. Three years ago, they set aside $12,000 for this purpose. Today, that account is worth $16,418. What rate of interest is tropical tans earning on this money?

Solution Preview

We are given the present value, future value and the time and we have to find the rate. We can calculate the Future Value by ...

Solution Summary

The solution explains how to determine the rate of interest given the initial amount and the final amount.