document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=426672>Question 426672</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If P dollars are deposited at an interest rate r and compounded n times, the future value An can be found by the formula An=P(1=r)^n. Find the rate of interest if a principal amount of $5000 grows to $6050 in 2 years if interest is compunded annually?\r<BR>\n" );
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document.write( "Answer key has 10% as the answer but doesn't explain the process of solving the equation. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #296794 by </B><A HREF=/tutors/aboutme.mpl?userid=htmentor><B>htmentor(1343)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=htmentor><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/cgi-bin/show-face.mpl?user=htmentor><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=296794\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A+=+P%281+%2B+r%29%5En ALIGN=MIDDLE  ALT=\"A+=+P%281+%2B+r%29%5En\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "We are given A = $6050, P = $5000, and n = 2 yrs<BR>\n" );
document.write( "So we have <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=6050+=+5000%281+%2B+r%29%5E2 ALIGN=MIDDLE  ALT=\"6050+=+5000%281+%2B+r%29%5E2\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "Divide by 5000, and take the square root of both sides:<BR>\n" );
document.write( "1.1 = 1 + r -> r = 0.1, or 10% annual interest rate </SPAN>\n" );
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