document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=647465>Question 647465</A>: <I><SPAN STYLE=\"word-break: break-all;\"> In order for an investment of $1000 to grow to more than $1062.50 in two years, what must the annual rate be? ( A=P(1+rt)) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #406212 by </B><A HREF=/tutors/aboutme.mpl?userid=swincher4391><B>swincher4391(1107)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=swincher4391><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=swincher4391><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=406212\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Let t be in years. This question is ambiguous, but I assume that since it's asking for the annual rate, it is compounded yearly.\r<BR>\n" );
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document.write( "1000(1+r(2)) > 1062.50\r<BR>\n" );
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document.write( "1000 + 2000r > 1062\r<BR>\n" );
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document.write( "2000r > 62\r<BR>\n" );
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document.write( "r > 0.031\r<BR>\n" );
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document.write( "So, r must be at least 0.031 or 3.1%<BR>\n" );
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