SOLUTION: The formula A = P(1 + r)2 is used to find the amount of money, A, in an account after P dollars have been invested in the account paying an annual interest rate, r, for 2 years. Fi

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Question 1048509: The formula A = P(1 + r)2 is used to find the amount of money, A, in an account after P dollars have been invested in the account paying an annual interest rate, r, for 2 years. Find the interest rate r if $500 grows to $845 in 2 years.
Answer by jorel555(1290) About Me  (Show Source):
You can put this solution on YOUR website!
845=500(1+r)²
845/500=(1+r)²
1.69=(1+r)²
1+r=1.3
r=30%. ☺☺☺☺