SOLUTION: when P dollars is invested at interest rate I, compounded annually, for T years, the investment grows to A dollars, where A=P(1+I)^T. find the interest rate I if 204,800 grows to 3

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Question 380415: when P dollars is invested at interest rate I, compounded annually, for T years, the investment grows to A dollars, where A=P(1+I)^T. find the interest rate I if 204,800 grows to 342,950 in three years
Found 2 solutions by robertb, solver91311:
Answer by robertb(5830) (Show Source):
You can put this solution on YOUR website!
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1 + I = 1.1875, or I = 0.1875, or 18.75%.

Answer by solver91311(24713) (Show Source):
You can put this solution on YOUR website!

Here's how to do it no matter what the numbers are:

Since your problem compounds annually, , so this reduces to:

Now all you have to do is plug in the numbers:

and

And then start punching calculator buttons.

John

My calculator said it, I believe it, that settles it