Answer:
Rate of interest is 8.37%
Explanation:
Future Value = [tex]PV(1+r)^{3}[/tex]
3,500 = 2750 [tex](1+r)^{3}[/tex]
[tex]\frac{3500}{2750}[/tex] = [tex](1+r)^{3}[/tex]
[tex]\sqrt[3]{\frac{3500}{2750}}[/tex] = [tex]\sqrt[3]{(1+r)^{3}}[/tex]
1.0837 = 1+r
r = 1.0837 - 1
r = 0.0837
r = 8.37%
Check:
3500 = 2750 [tex](1+0.0837)^{3}[/tex]
3500 = 3500
