What was tge interest rate if your balance on an investment of 27750 at the end of six years is 42079

To find the interest rate, we can use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- \(A\) is the amount of money after interest (final balance).
- \(P\) is the principal (initial investment).
- \(r\) is the annual interest rate (what we need to find).
- \(n\) is the number of times interest is compounded per year.
- \(t\) is the time the money is invested for (in years).

In your case:
- \(A = 42079\)
- \(P = 27750\)
- \(t = 6\)
- Assume \(n = 1\) (for simplicity, let's assume it's compounded annually unless otherwise specified).

The formula simplifies to:

\[
42079 = 27750 \left(1 + r\right)^6
\]

Now we can solve for \(r\).

Let me calculate it for you.The interest rate is approximately **7.18%** per year.

Do you need further details or have any questions?

Here are five related questions you might find useful:
1. How would the rate change if compounded monthly instead of annually?
2. How much interest was earned during the six years?
3. What would the balance be after 10 years at this rate?
4. How would the calculation change if the interest was compounded continuously?
5. How can inflation affect the real value of the interest?

**Tip**: Always check if interest is compounded annually, monthly, or continuously, as it affects the final amount significantly.

What was the interest rate if your balance on an investment of 27750 at the end of six years is 42079?

Learn how to calculate the interest rate for an investment of 27750 that grows to 42079 after six years. This guide covers compound interest, key formulas, and detailed steps. Suitable for high school students in Grades 9-12.

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