SOLUTION: Use A=P(l+r)^t to find the interest rate r.Round to the nearest hundredth. Assume that interest is componded annually. $8000(P) grows to $8487(A) in 2 years(t)

Question 234384: Use A=P(l+r)^t to find the interest rate r.Round to the nearest hundredth.
Assume that interest is componded annually.
$8000(P) grows to $8487(A) in 2 years(t)
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Use A=P(l+r)^t to find the interest rate r.
Round to the nearest hundredth.
Assume that interest is componded annually.
$8000(P) grows to $8487(A) in 2 years(t)
----------------------
8487 = 8000(1+r)^2
-------------------
Divide by 8000 to get:
8487/8000 = (1+r)^2
Take the positive square root of both sides:
1.02999 = 1+r
r = 0.029999
Rounding you get: r = 3%
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Cheers,
Stan H.
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