type the correct answer in the box. spell all words correctly. what is the effective rate of interest if…

Explanation:

Step1: Use compound - interest formula

The compound - interest formula is $A = P(1 + r)^n$, where $A$ is the final amount, $P$ is the principal amount, $r$ is the annual interest rate, and $n$ is the number of years. We know that $P=$1000$, $A = $1331$, and $n = 3$. Substituting these values into the formula gives $1331=1000(1 + r)^3$.

Step2: Solve for $(1 + r)$

Divide both sides of the equation $1331 = 1000(1 + r)^3$ by 1000: $\frac{1331}{1000}=(1 + r)^3$. Since $\frac{1331}{1000}=1.331$, we have $(1 + r)^3=1.331$. Taking the cube - root of both sides, $1 + r=\sqrt[3]{1.331}$. And $\sqrt[3]{1.331}=1.1$.

Step3: Solve for $r$

Subtract 1 from both sides of the equation $1 + r = 1.1$ to get $r=1.1−1 = 0.1$.

Step4: Convert $r$ to percentage

To convert the decimal $r$ to a percentage, multiply by 100. So $r = 0.1\times100=10%$.

Answer:

10