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Rate of interest

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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?

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Solution Summary

The solution explains how to calculate the rate of interest given the initial amount, final amount and the time period.

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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 ...

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