document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=884226>Question 884226</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If an amount of P in pesos is invested at r percentage compunded anually to an amount of A= P (1 + r)^t in two years. Suppose miss madrigal wants her money amounting to Php 200,000 to grow to Php 228,980 in 2 years. At what rate must she invest her money?\r<BR>\n" );
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document.write( "A= P(1+ r)^t\r<BR>\n" );
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document.write( "Where \r<BR>\n" );
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document.write( "P - original investment<BR>\n" );
document.write( "r- interest per compound period<BR>\n" );
document.write( "t - number of periods<BR>\n" );
document.write( "A= amount of money at the end </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #534102 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=534102\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> start with the equation of:\r<BR>\n" );
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document.write( "A = P * (1+r)^t\r<BR>\n" );
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document.write( "replace A with 228980 and replace P with 200000 and replace t with 2 to get:\r<BR>\n" );
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document.write( "228980 = 200000 * (1+r)^2\r<BR>\n" );
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document.write( "divide both sides of the equation by 200000 to get:\r<BR>\n" );
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document.write( "228980 / 200000 = (1+r)^2\r<BR>\n" );
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document.write( "take the square root of both sides of the equation to get:\r<BR>\n" );
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document.write( "(228980 / 200000) ^ (1/2) = 1 + r\r<BR>\n" );
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document.write( "subtract 1 from both sides of the equation to get:\r<BR>\n" );
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document.write( "(228980 / 200000) ^ (1/2) - 1 = r\r<BR>\n" );
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document.write( "simplify to get:\r<BR>\n" );
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document.write( "r = .07\r<BR>\n" );
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document.write( "that's your answer.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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