SOLUTION: If an investment of $2000 grows to $2633.62 in eight years with interest compounded annually, what is the interest rate? (Round your answer to one decimal place.)

Question 1058424: If an investment of $2000 grows to $2633.62 in eight years with interest compounded annually, what is the interest rate? (Round your answer to one decimal place.)
Answer by solve_for_x(190) (Show Source): You can put this solution on YOUR website!
Use the equation:

where FV is the future value, PV is the present value, r is the annual interest rate,
n is the number of periods per year, and t is the number of years.

For this problem, FV = 2633.62, PV = 2000, n = 1, and t = 8, which gives:

Solving for r gives:

r = 0.035 = 3.5%
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