SOLUTION: Can you help me solve this problem: $2500 grows to $2704 in 2 years. Use the formula A = P(1 + r)^t to find the interest rate.

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Question 311086: Can you help me solve this problem:
$2500 grows to $2704 in 2 years. Use the formula A = P(1 + r)^t to find the interest rate.
Answer by solver91311(16897) About Me  (Show Source):
You can put this solution on YOUR website!


Start with the given formula:



Then plug in the values we know:





Take the root (forget about the negative root, we certainly aren't looking for a negative interest rate):





The arithmetic is yours to do. Ask your teacher/instructor/professor where to get this interest rate. Wow, I want a piece of that!

John