Answer:
2.2%
Step-by-step explanation:
Given the initial invested as £3550, compound interest rate for first two years as 2.6% and interest for third year as R% and a final amount as £3819.21, R% can be calculated as:
#Compound interest in first two years:
[tex]A=P(1+i)^n, p=\£3550, i=2.6\%, n=2\\\\A=£3550(1.026)^2\\\\A=3737.00[/tex]
#Hence, the total amount after first two years is £3737. To find R%, we further compound it for the final year and equate it to the final amount:
[tex]A=P(1+I)^n, A=\£3819.21,i=R\%, n=1, P=\£3737\\\\3819.21=3737(1+i)\\\\(1+i)=\frac{3819.21}{3737}\\\\i=\frac{3819.21}{3737}-1\\\\i=1.021999-1\\\\i=0.02199[/tex]
Hence, R% is equivalent to 2.2%
