SOLUTION: At what rate percent will a sum of w 3,125 amount to w 3,645 in 2 years, if the interest is compounded annually?

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: At what rate percent will a sum of w 3,125 amount to w 3,645 in 2 years, if the interest is compounded annually?      Log On


   

Question 951556: At what rate percent will a sum of w 3,125 amount to w 3,645 in 2 years, if
the interest is compounded annually?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
At what rate percent will a sum of w 3,125 amount to w 3,645 in 2 years, if
the interest is compounded annually?
=====
A(t) = P(1+(r/n))^(nt)
3645 = 3125(1+r/1))^(1*2)
----
(1+r)^2 = 1.1664
-----
1+r = 1.08
rate = 0.08 = 8%
-----------------
Cheers,
Stan H.
-------------