document.write( "Question 1062458: The formula A=P(1+r)^2 gives the amount A in dollars that P dollars will grow to in 2 years at interest rate (where r is given as a decimal), using compound interest. What interest rate will cause $5000 to grow to $ 5356.13 in 2 years? \n" ); document.write( "

Algebra.Com's Answer #677371 by josmiceli(19441) $\"\"$ $\"About$

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$\"+A+=+P%2A%28+1+%2B+r+%29%5E2+\"$
\n" ); document.write( " $\"+5356.13+=+5000%2A%28+1+%2B+r+%29%5E2+\"$
\n" ); document.write( " $\"+1.07123+=+%28+1+%2B+r+%29%5E2+\"$
\n" ); document.write( "Take the square root of both sides
\n" ); document.write( " $\"+1.035+=+1+%2B+r+\"$
\n" ); document.write( " $\"+r+=+.035+\"$
\n" ); document.write( "This is the rate as a decimal.
\n" ); document.write( "The rate as a percent is:
\n" ); document.write( " $\"+.035%2A100+=+3.5+\"$
\n" ); document.write( "3.5%
\n" ); document.write( "---------------------
\n" ); document.write( "check:
\n" ); document.write( " $\"+A+=+P%2A%28+1+%2B+r+%29%5E2+\"$
\n" ); document.write( " $\"+5356.13+=+5000%2A%28+1+%2B+.035+%29%5E2+\"$
\n" ); document.write( " $\"+1.07123+=+1.035%5E2+\"$
\n" ); document.write( " $\"+1.07123+=+1.07123+\"$
\n" ); document.write( "OK \n" ); document.write( "

\n" );