SOLUTION: p=dollars. r=rate of interest compounded anually. A= accummulated at the end of t years given by the formula. A=p(1+r)^t. George invested $150.00 at a certian rate of inte

Algebra ->  Quadratic Equations and Parabolas -> SOLUTION: p=dollars. r=rate of interest compounded anually. A= accummulated at the end of t years given by the formula. A=p(1+r)^t. George invested $150.00 at a certian rate of inte      Log On


   



Question 526413: p=dollars. r=rate of interest compounded anually. A= accummulated at the end of t years given by the formula. A=p(1+r)^t.
George invested $150.00 at a certian rate of interest compounded anually for two years. If the accumulated value at the end of two years is $175.00, find the rate of interest.

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
++A+=+P%2A%281+%2B+r%29%5Et+
given:
+A+=+175+
+P+=+150+
+t+=+2+
++175+=+150%2A%281+%2B+r%29%5E2+
+%281+%2B+r%29%5E2+=+175+%2F+150+
+%281+%2B+r%29%5E2+=+7%2F6+
Take the square root of both sides
+1+%2B+r+=+1.08+
+r+=+.08+
The interest rate is 8%