An account invested in a money market fund grew from 

​$73 comma 294.9473,294.94 

to 

​$73 comma 590.3373,590.33 

in a month. What was the interest rate to the nearest​ tenth?

Question content area bottom

Part 1

What was the interest​ rate?

enter your response here​%

​(Do not round until the final answer. Then round to the nearest tenth as​ needed.)

We can solve for the monthly interest rate using the formula for **simple growth in a financial account**:

\[
A = P(1 + r)
\]

Where:
- $A$ is the final amount = 73,590.33
- $P$ is the initial amount = 73,294.94
- $r$ is the monthly interest rate (we need to find it).

### Step 1: Solve for $r$

\[
73,590.33 = 73,294.94 (1 + r)
\]

Divide both sides by 73,294.94:

\[
\frac{73,590.33}{73,294.94} = 1 + r
\]

\[
1.004 = 1 + r
\]

### Step 2: Isolate $r$

\[
r = 1.004 - 1 = 0.004
\]

### Step 3: Convert to Percentage

\[
r \times 100 = 0.4\%
\]

Thus, the monthly interest rate is:

\[
\boxed{0.4\%}
\]

Let me know if you need further clarification or additional details!

---

### 5 Related Questions:
1. How is compound interest different from simple interest in such calculations?
2. How do you calculate an annualized interest rate from a monthly rate?
3. What if there are withdrawals or deposits? How does that impact interest calculations?
4. What formulas can be used for calculating returns over multiple months?
5. How does inflation affect real returns on money market investments?

---

**Tip:** Always double-check for rounding instructions in finance problems, as small errors can lead to significant differences over time.

An account invested in a money market fund grew from $73,294.94 to $73,590.33 in a month. What was the interest rate to the nearest tenth?

Learn how to calculate the monthly interest rate for a money market fund that grew from $73,294.94 to $73,590.33. This step-by-step solution explains key financial concepts like simple interest and percentage calculations. Suitable for Grades 9-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation