SOLUTION: Use P(l+r)^t to find the interst rate r. Round to nearest hundredth $8000 (P) grows to $8487 (A) in 2 years (t). Assume that interest is compounded annually.

Algebra ->  Linear-equations -> SOLUTION: Use P(l+r)^t to find the interst rate r. Round to nearest hundredth $8000 (P) grows to $8487 (A) in 2 years (t). Assume that interest is compounded annually.      Log On


   

Question 299197: Use P(l+r)^t to find the interst rate r. Round to nearest hundredth
$8000 (P) grows to $8487 (A) in 2 years (t). Assume that interest is compounded annually.
Answer by nerdybill(7384) About Me  (Show Source):
You can put this solution on YOUR website!
Use P(l+r)^t to find the interst rate r. Round to nearest hundredth
$8000 (P) grows to $8487 (A) in 2 years (t). Assume that interest is compounded annually.
.
Plug given data into:
A=P%28l%2Br%29%5Et
8487+=+8000%281%2Br%29%5E2
8487%2F8000+=+%281%2Br%29%5E2
sqrt%288487%2F8000%29+=+1%2Br
sqrt%288487%2F8000%29+-+1+=+r
+0.02999+=+r+
.
Solution:
interest is 3.00% (to the nearest hundredth)