SOLUTION: Find the rate at which ​$12,696 compounded annually grows to ​13,824 in 2 years.using a=P(1+r)^t

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Question 1103565: Find the rate at which ​$12,696 compounded annually grows to ​13,824 in 2 years.using a=P(1+r)^t
Found 2 solutions by josgarithmetic, ikleyn:
Answer by josgarithmetic(39631)   (Show Source): You can put this solution on YOUR website!
Substitute the given values any time you are ready.

Choose your base for the logarithm, but





Not yet reached a formula for r, but you can find that easily from what value you find from .

-






rate is 4.3%
Answer by ikleyn(52925)   (Show Source): You can put this solution on YOUR website!
.
12699*(1+r)^2 = 13824  ====>


(1+r)^2 =   ====>


1 + r =   ====>


r =  = 0.0433.


Answer.  The rate is 0.0433,  or  4.33%  compounded annually.

Ignore the @josgarithmetic writing.


His approach to solving this problem is  W R O N G.



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