document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1065333>Question 1065333</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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 r (where r is given as a decimal), using compound interest. What interest rate will cause $3000 to grow to $3307.50 in 2&#8203; years?\r<BR>\n" );
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document.write( "The interest rate is ___ % </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #680483 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=680483\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> formula is A = P * (1 + r)^2.\r<BR>\n" );
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document.write( "if you let P = 3000 and you let A = 3307.50, then the formula becomes:\r<BR>\n" );
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document.write( "3307.50 = 3000 * (1 + r)^2\r<BR>\n" );
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document.write( "divide both sides of the equation by 3300 and you get:\r<BR>\n" );
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document.write( "3307.50 / 3000 = (1 +r)^2\r<BR>\n" );
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document.write( "take the square root of both sides of this equation and you get:\r<BR>\n" );
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document.write( "(3307.50 / 3000)^(1/2) = 1 + r\r<BR>\n" );
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document.write( "subtract 1 from both sides of this equation to get:\r<BR>\n" );
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document.write( "(3307.50 / 3000)^(1/2) - 1 = r\r<BR>\n" );
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document.write( "solve for r to get:\r<BR>\n" );
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document.write( "r = .05\r<BR>\n" );
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document.write( "replace r in your original equation by .05 and you get:\r<BR>\n" );
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document.write( "3307.5 = 3000 * (1.05)^2\r<BR>\n" );
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document.write( "evaluate this equation to get 3307.5 = 3307.5\r<BR>\n" );
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document.write( "r = .05 is your solution. </SPAN>\n" );
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