Answer:
5%
Step-by-step explanation:
A = P(1+r)^n
A is the total amount the investment yields in 30 years.
Total amount = total interest + principal = (73×30) + 700 = 2,190 + 700 = 2,890 pounds
P is the principal,it is the amount that is invested. P = 700 pounds
n is the duration of the investment. n = 30 years
2,890 = 700(1 + r)^30
(1 + r)^30 = 2890/700
(1 + r)^30 = 4.13
1 + r = (4.13)^1/30
1 + r = 1.05
r = 1.05 - 1 = 0.05 = 5%
Interest rate (r) is 5%
