Answer:
The rate is 4.9%.
Step-by-step explanation:
The compound interest formula is :
[tex]A=p(1+\frac{r}{n})^{nt}[/tex]
A = 73677.48
p = 73377.34
r = ?
n = 12
t = 1/12
Putting the values in formula we get;
[tex]73677.48=73377.34(1+\frac{r}{12})^{12*1/12}[/tex]
=> [tex]73677.48=73377.34(1+\frac{r}{12})^{1}[/tex]
=> [tex]\frac{73677.48}{73377.34} =(1+\frac{r}{12})[/tex]
=> [tex]1.004090=(\frac{12+r}{12})[/tex]
=> [tex]12.04908=12+r[/tex]
=> [tex]r = 12.04908-12[/tex]
r = 0.04908
or r = 4.9%
Therefore, the interest rate is 4.9%.
