SOLUTION: You invest $2,500 at an interest rate that is compounded annually. After 8 years, your principal has increased to $3,046.01. What percent is the interest rate?

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Question 635385: You invest $2,500 at an interest rate that is compounded annually. After 8 years, your principal has increased to $3,046.01. What percent is the interest rate?
Answer by reviewermath(1029) About Me  (Show Source):
You can put this solution on YOUR website!
+2500%281%2Br%29%5E8+=+3046.01
%281%2Br%29%5E8+=+3046.01%2F2500
+%281%2Br%29+=+%283046.01%2F2500%29%5E%281%2F8%29
+r+=+%283046.01%2F2500%29%5E%281%2F8%29-+1
The interest rate is r = 2.5%