document.write( "Question 647839: P dollars, invested at interest r compounded annually, increase to an amount A=P(1+r)^2 in 2 years. An investment of $1000 is to increase to an amount greater than $1100 in 2 years. The interest rate must be greater than what percent? \n" ); document.write( "

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P dollars, invested at interest r compounded annually, increase to an amount A=P(1+r)^2 in 2 years. An investment of $1000 is to increase to an amount greater than $1100 in 2 years. The interest rate must be greater than what percent?
\n" ); document.write( "A=P(1+r)^2
\n" ); document.write( "A/P=(1+r)^2>1100/1000=11/10
\n" ); document.write( "(1+r)^2>11/10
\n" ); document.write( "take sqrt of both sides
\n" ); document.write( "1+r>√(11/10)
\n" ); document.write( "r>√(11/10)-1
\n" ); document.write( "=1.0488-1
\n" ); document.write( "=0.0488
\n" ); document.write( "r>4.88%
\n" ); document.write( "interest rate must be greater than 4.88% \n" ); document.write( "

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