What was the interest rate if your balance on an investment of 27750 at the end of six years is 41070? In grade 7 math

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

\[
A = P \times (1 + r)^t
\]

Where:
- \( A \) is the final amount (41070),
- \( P \) is the principal (initial investment) (27750),
- \( r \) is the annual interest rate (which we are trying to find),
- \( t \) is the number of years (6).

We can rearrange the formula to solve for \( r \):

\[
r = \left( \frac{A}{P} \right)^{\frac{1}{t}} - 1
\]

Now let's plug in the values and solve for \( r \). 

\[
r = \left( \frac{41070}{27750} \right)^{\frac{1}{6}} - 1
\]The interest rate is approximately 6.75% per year.

Would you like more details on how this was calculated, or do you have any other questions?

Here are 5 related questions:
1. How does compound interest differ from simple interest?
2. What would the balance be after 10 years at the same interest rate?
3. How would the formula change if interest were compounded monthly instead of yearly?
4. What happens to the interest rate if the time period increases but the final amount stays the same?
5. Can you calculate the total interest earned over the 6-year period?

**Tip:** Understanding the relationship between time, interest rate, and final amount helps in making better financial decisions!

What was the interest rate if your balance on an investment of 27750 at the end of six years is 41070?

Learn how to calculate the interest rate for an investment of 27750 that grows to 41070 over six years. This Grade 7 math problem involves using the compound interest formula and solving for the interest rate. Suitable for students learning basic algebra and finance.

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