SOLUTION: Use the compound interest formula A=P(1+r)t to find the annual interest rate, r, if in 2 years an investment of $3,000 grows to $3,360. What is the rate?

Question 869661: Use the compound interest formula A=P(1+r)t to find the annual interest rate, r, if in 2 years an investment of $3,000 grows to $3,360. What is the rate?
Answer by josgarithmetic(39618) (Show Source): You can put this solution on YOUR website!
The formula must be shown as . The time variable is an exponent. Just solve the equation for r, and then put in the given values.

In base 10,

Substitute now the values for t, A, and P, and obtain the value. You want the ANTILOG of this value, which will be , from which you subtract 1 to obtain r.
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