Question 311086
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Start with the given formula:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ A\ =\ P(1\ +\ r)^t]


Then plug in the values we know:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ 2704\ =\ 2000(1\ +\ r)^2]


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ (1\ +\ r)^2\ =\ \frac{2704}{2000}]


Take the root (forget about the negative root, we certainly aren't looking for a  negative interest rate):


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ 1\ +\ r\ =\ \frac{52}{20\sqrt{5}}\ =\ \frac{52\sqrt{5}}{100}]


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ r\ =\ \frac{52\sqrt{5}\ -\ 100}{100}]


The arithmetic is yours to do.  Ask your teacher/instructor/professor where to get this interest rate.  Wow, I want a piece of that!


John
*[tex \LARGE e^{i\pi} + 1 = 0]
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