Suppose that in 2015, a $10 silver certificate from 1898 sold for $11,700.For this to have been true, what would the annual increase in the value of the certificate have been?
A)6.22 percent
B)6.01 percent
C)7.23 percent
D)6.49 percent
E)7.07 percent

Question

Quizplus · Accepted Answer

To find the annual increase, we use the formula for compound interest: Final Value = Initial Value * (1 + rate)^years. Plugging in the values: $11,700 = $10 * (1 + rate)^(2015-1898). Solving for the rate gives approximately 6.22%.

Suppose That in 2015, a $10 Silver Certificate from 1898