Question: Given Information: Principal (P) = $159 Interest earned = $25 Final Amount (A) = P + Interest = $159 + $25 = $184 Time (t)

Given Information: Principal (P) = $159 Interest earned = $25 Final Amount (A) = P + Interest = $159 + $25 = $184 Time (t) = 8 years Compounding frequency (n) = 365 (daily) Using the compound interest formula: A=P(1+r/n)^nt Solve for r: 184=159(1+r/365)^3658 184/159=(1+r/365)^3658 (184/159)1/8x365=1+r/365 r=365[((184/159)1/3658)1] Result: Nominal interest rate (decimal): 0.018254 Nominal interest rate (percentage): 1.8254% = 2 decimal rounded 1.83% Therefore, a nominal interest rate of 1.83% compounded daily is required for $159 to earn $25 in interest over 8 years

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