4.14%
0.59%
0.69%
0.79%
Answer is Right!
Answer is Wrong!
The correct answer is A. 4.14%.
The formula for calculating compound interest is:
$FV = PV(1 + r/n)^nt$
where:
- $FV$ is the future value
- $PV$ is the present value
- $r$ is the interest rate
- $n$ is the number of times interest is compounded per year
- $t$ is the number of years
In this case, we know that $FV = 150$, $PV = 100$, $n = 1$, and $t = 10$. Substituting these values into the formula, we get:
$150 = 100(1 + r/1)^{10}$
$1.5 = (1 + r/1)^{10}$
$(1.5)^{1/10} = (1 + r/1)$
$1.059463094 = 1 + r/1$
$r = 0.0414213562$
$r = 4.14\%$
Therefore, the interest rate is 4.14%.
Option B is incorrect because the interest rate is not 0.59%.
Option C is incorrect because the interest rate is not 0.69%.
Option D is incorrect because the interest rate is not 0.79%.