select the correct answer from each drop - down menu. the expression 1,000(1.0215)^4t represents the amount…

select the correct answer from each drop - down menu. the expression 1,000(1.0215)^4t represents the amount of money in an account after t years. the interest is compounded, and the annual interest rate on the account is 8.88%, 8.60%, 4.00%, 2.15%

select the correct answer from each drop - down menu. the expression 1,000(1.0215)^4t represents the amount of money in an account after t years. the interest is compounded, and the annual interest rate on the account is 8.88%, 8.60%, 4.00%, 2.15%

Answer

Explanation:

Step1: Recall compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $A$ is the amount of money in the account after $t$ years, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years. In the given expression $1000(1.0215)^t$, we can compare it with the compound - interest formula. Here, $P = 1000$ and $1 + r=1.0215$.

Step2: Solve for $r$

If $1 + r = 1.0215$, then $r=1.0215 - 1=0.0215$. To convert $r$ from decimal form to percentage form, we multiply by 100. So $r = 0.0215\times100 = 2.15%$.

Answer:

2.15%