SOLUTION: At the end of 2​ years, P dollars invested at an interest rate r compounded annually increases to an​ amount, A​ dollars, given by the following formula.
A=P(1
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A=P(1
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Question 1029105: At the end of 2 years, P dollars invested at an interest rate r compounded annually increases to an amount, A dollars, given by the following formula.
A=P(1+r)2
Find the interest rate if $128 increased to $242 in 2 years. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Find the interest rate if $128 increased to $242 in 2 years
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A(t) = P(1+(r/n))^(nt)
242 = 128(1+(r/1))^(1*2)
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(1+r)^2 = 1.8906
1+r = 1.375
rate = 0.375 = 37.5%
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Cheers,
Stan H.
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