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If $1,000 is deposited in a certain bank account and remains in the account along with any accumulated interest, the dollar amount of interest, I=1000[(1+r/100)^2-1] , earned by the deposit in the first n years is given by the formula , where r percent is the annual interest rate paid by the bank. Is the annual interest rate paid by the bank greater than 8 percent?
[1]The deposit earns a total of $210in interest in the first two years.
[2](1+r/100)^2>1.15
A |
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