document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=234384>Question 234384</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use A=P(l+r)^t to find the interest rate r.Round to the nearest hundredth.\r<BR>\n" );
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document.write( "Assume that interest is componded annually.\r<BR>\n" );
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document.write( "$8000(P) grows to $8487(A) in 2 years(t) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #172812 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=172812\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Use A=P(l+r)^t to find the interest rate r.<BR>\n" );
document.write( "Round to the nearest hundredth. <BR>\n" );
document.write( "Assume that interest is componded annually. <BR>\n" );
document.write( "$8000(P) grows to $8487(A) in 2 years(t)<BR>\n" );
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document.write( "8487 = 8000(1+r)^2<BR>\n" );
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document.write( "Divide by 8000 to get:<BR>\n" );
document.write( "8487/8000 = (1+r)^2<BR>\n" );
document.write( "Take the positive square root of both sides:<BR>\n" );
document.write( "1.02999 = 1+r<BR>\n" );
document.write( "r = 0.029999<BR>\n" );
document.write( "Rounding you get: r = 3%<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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