SOLUTION: In order for an investment of $1000 to grow to more than $1062.50 in two years, what must the annual rate be? ( A=P(1+rt))

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Question 647465: In order for an investment of $1000 to grow to more than $1062.50 in two years, what must the annual rate be? ( A=P(1+rt))
Answer by swincher4391(1107) About Me  (Show Source):
You can put this solution on YOUR website!
Let t be in years. This question is ambiguous, but I assume that since it's asking for the annual rate, it is compounded yearly.
1000(1+r(2)) > 1062.50
1000 + 2000r > 1062
2000r > 62
r > 0.031
So, r must be at least 0.031 or 3.1%