document.write( "Question 1091864: If an amount of money, called the principal, P, is deposited into an account that earns interest at a rate R, compound annually, then in 2 years that investments will grow to an amount A, given the formula A= P(1+r)^2. If a principal amount of $5000 grows to $6384.50 in two years, what is the interest rate? \n" ); document.write( "

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If an amount of money, called the principal, P, is deposited into an account that earns interest at a rate R, compound annually, then in 2 years that investments will grow to an amount A, given the formula A= P(1+r)^2.
\n" ); document.write( " If a principal amount of $5000 grows to $6384.50 in two years, what is the interest rate?
\n" ); document.write( ":
\n" ); document.write( "The equation.
\n" ); document.write( "5000*(1+r)^2 = 6384.50
\n" ); document.write( "(1+r)^2 = $\"6384.50%2F5000\"$
\n" ); document.write( "(1+r)^2 = 1.2769
\n" ); document.write( "Find square root of both sides
\n" ); document.write( "1 + r = $\"sqrt%281.2769%29\"$
\n" ); document.write( "1 + r = 1.13
\n" ); document.write( "r = 1.13 - 1
\n" ); document.write( "r = .13; 13% is the interest rate\r
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