SOLUTION: if $P are invested at an interest rate r compunded annually, at the end of 5 years the amount will be? A=P(1=r)^5 at what interest rate will $3000 increase to $5500 in 5 years?

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: if $P are invested at an interest rate r compunded annually, at the end of 5 years the amount will be? A=P(1=r)^5 at what interest rate will $3000 increase to $5500 in 5 years?      Log On


   



Question 1033786: if $P are invested at an interest rate r compunded annually, at the end of 5 years the amount will be? A=P(1=r)^5
at what interest rate will $3000 increase to $5500 in 5 years? r=

Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
A=P%281%2Br%29%5E5 ==> 5500+=+3000%281%2Br%29%5E5
==> 11%2F6+=+%281%2Br%29%5E5 ==> r+=+root%285%2C+11%2F6%29-1+=+0.12888 to five significant figures.
Therefore, r = 12.9%.