Question 1006877
the formula is A = P * (1+r)^2


P = 1000
r = the annual interest rate
A = 1092.03


the formula becomes:


1092.03 = 1000 * (1+r)^2


divide both sides of this equation by 1000 to get:


1092.03 / 1000 = (1+r)^2


raise both sides of that equation to the power of 1/2 to get:


(1092.03 / 1000) ^ (1/2) = 1 + r


the expression on the right side of the equation becomes 1 + r because:


((1+r)^2)^(1/2) becomes (1+r)^(2 * 1/2) which becomes (1+r)^1 which becomes 1+r.


subtract 1 from both sides of this equation to get:


(1092.03 / 1000) ^ (1/2) - 1 = r


solve for r to get:


r = .045002392


confirm by replacing r in the original equation with .045002392 to get:


1092.03 = 1000 * (1.045002392)^2 which becomes:


1092.03 = 1092.03, confirming the solution is correct.

1.


your solution is r = .045002392


the percent is 100 * .045002392 = 4.5002392%.


round that to the nearest tenth of a percent and your solution becomes:


r = 4.5%.