Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Section 2.1 - Simple Interest - Exercises - Page 134: 38

Answer

$ 10\%$

Work Step by Step

Reading the graph, in 1950, PV= 500 (thousands) in $1990$ (t=$40$ years), FV=$2500$ thousands $INT=PVrt$ $FV-PV=PVrt\qquad $... solve for r ... $r=\displaystyle \frac{FV-PV}{PV\cdot t}=\frac{2500-500}{500\cdot 40}=0.1$, or $ 10\%$
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