Respuesta :

Solution:

The formula that we can apply in this case is the following:

[tex]r\text{ = (}\frac{1}{t})(\frac{A}{P}-1)[/tex]

now, solving we get:

[tex]r\text{ = (}\frac{1}{7})(\frac{1400}{1200}-1)=\text{ }0.02380952[/tex]

if we convert this amount into a percentage we get the final answer:

[tex]0.02380952\text{ x 100\% = }2.381[/tex]

then, the correct answer is:

2.381% per year

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