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August 4, 2015

Homework Help: Algebra

Posted by Cassie on Thursday, April 2, 2009 at 7:19pm.

Greta invests $10,000 in an investment that pays 3% interest, compounded annually, for the first three years, then 9% interest, compounded annually, for the last three years. Rui invests $10,000 in an investment that pays r% for all six years. The two investments are worth the same amount after 6 years. Is (r) greater than, equal to, or less than 6?

Here is the standard equation I was taught:

(1 + r/100m)^nm ($k)

r-- interest rate
m--how many times compounded a year
n--number of years
k--dollars invested

How would I figure out this problem, preferably using the equation above?

Thank you!

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