SOLUTION: Use A=P(1+r)^t to find the interest rate r. round to the nearest hundreth, if necessary. $8000 (P) grows to $8487 (A) in 2 years (t). Assume that interest is

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Question 298124: Use A=P(1+r)^t to find the interest rate r. round to the nearest hundreth, if necessary.
$8000 (P) grows to $8487 (A) in 2 years (t). Assume that interest is compounded annually.
I am lost on this problem.... I know that it is 8487=8000(1+r)^2
8487/8000= (1+r)^2
then I get really confused on this step. please help.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


So far, so good. Now just take the square root of both sides. Ordinarily, you would consider both the positive and negative square roots, but in this context the negative square root doesn't make much sense -- stick with the positive.



And then add -1 to both sides



A little calculator work and you are through.


John