document.write( "Question 869661: Use the compound interest formula A=P(1+r)t to find the annual interest rate, r, if in 2 years an investment of $3,000 grows to $3,360. What is the rate? \n" ); document.write( "

Algebra.Com's Answer #524318 by josgarithmetic(39618) $\"\"$ $\"About$

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The formula must be shown as $\"A=P%281%2Br%29%5Et\"$ . The time variable is an exponent. Just solve the equation for r, and then put in the given values.\r
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\n" ); document.write( "\n" ); document.write( "In base 10,
\n" ); document.write( " $\"log%2810%2CA%29=log%2810%2CP%29%2Blog%2810%2C%281%2Br%29%5Et%29\"$
\n" ); document.write( " $\"log%2810%2CA%29-log%2810%2CP%29=t%2Alog%2810%2C%281%2Br%29%29\"$
\n" ); document.write( " $\"log%2810%2C%28A%2FP%29%29=t%2Alog%2810%2C%281%2Br%29%29\"$
\n" ); document.write( " $\"highlight_green%28log%2810%2C%281%2Br%29%29=%281%2Ft%29log%2810%2C%28A%2FP%29%29%29\"$ \r
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\n" ); document.write( "\n" ); document.write( "Substitute now the values for t, A, and P, and obtain the value. You want the ANTILOG of this value, which will be $\"1%2Br\"$ , from which you subtract 1 to obtain r. \n" ); document.write( "

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