A construction crew is lengthening a road. The road started with a length of 54 miles, and the crew is adding 3 miles to the roa
1 answer:
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Answer:
a) About 12%
Step-by-step explanation:
We need to find the interest rate required to achieve her goal, so we will need to use the interest-compound formula:
Where:
PV= Present Value
i= interest rate
FV= Future Value
n= number of periods
replacing the data provided:
solving for i:
first, divide both sides by 50.000 to simplify the equation:
Take roots of both sides:
±
solve for i:
±
We get two answers, but we look for a coherent value. So we take the positive one:
≈12