Answer:
11%
Step-by-step explanation:
Compound Interest Formula: initial ( 1 + interest rate )^time = final amount
Let compound interest be x
4000(1+x)^3 = 5500
Divide both sides by 4000
4000(1+x)^3 / 4000 = 5500/4000
Cube root both sides
[tex]\sqrt[3]{(1+x)^3} =\sqrt[3]{11/8}[/tex]
1 + x = 2.22398 / 2
1 + x = 1.11199
Minus both sides by 1
1 + x = 1.11199
-1 -1
x = .11199 = 11%
