Use the compound interest formula A=P(1+r)^t and the given information to solve for r.
A=9,000,000
P=80,000
t=40
I have done this problem over a over and still get the wrong answer.
To solve for r in the compound interest formula A=P(1+r)^t, we can follow these steps:
Step 1: Plug in the given values into the formula:
A = 9,000,000
P = 80,000
t = 40
The formula becomes:
9,000,000 = 80,000(1+r)^40
Step 2: Divide both sides of the equation by P to isolate the (1+r)^t term:
9,000,000 / 80,000 = (1+r)^40
Simplifying the left side gives us:
112.5 = (1+r)^40
Step 3: Take the 40th root of both sides. This will cancel out the exponent on the right side:
√(1+r)^40 = √112.5
This gives us:
1+r = √112.5
Step 4: Solve for r by subtracting 1 from both sides of the equation:
r = √112.5 - 1
Step 5: Use a calculator to evaluate the square root and subtract 1:
r = 10.608 - 1
Thus, r ≈ 9.608.
After following these steps, you should arrive at the correct answer of approximately 9.608.