SOLUTION: If $P are invested at an interest rate r compounded annually, at the end of 2 years the amount will be A=P(1+r). At what interest rate will $1000 increase to $1440 in 2 years ? A

SOLUTION: If $P are invested at an interest rate r compounded annually, at the end of 2 years the amount will be A=P(1+r). At what interest rate will $1000 increase to $1440 in 2 years ? A

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Question 578806: If $P are invested at an interest rate r compounded annually, at the end of 2 years the amount will be A=P(1+r). At what interest rate will $1000 increase to $1440 in 2 years ? A=$1440 and P=$1000.

Answer by dfrazzetto(283) (Show Source): You can put this solution on YOUR website!
According to the stated formula (which does not look how annually compounded interest works FYI):
A=P(1+r)
1440 = 1000(1+r)
1440 = 1000 + 1000r
1000r = 440
r= 440/1000=.44 = 44%
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