Question 1058424
Use the equation:


{{{FV = PV(1 + r/n)^(nt)}}}


where FV is the future value, PV is the present value, r is the annual interest rate,
n is the number of periods per year, and t is the number of years.


For this problem, FV = 2633.62, PV = 2000, n = 1, and t = 8, which gives:


{{{2633.62 = 2000(1 + r)^8}}}


Solving for r gives:


{{{(1 + r)^8 = 2633.62 / 2000}}}


{{{8*ln(1 + r) = ln(2633.62/2000)}}}


{{{ln(1 + r) = (1/8)* ln(2633.62/2000)}}}


{{{ln(1 + r) = 0.0344}}}


{{{1 + r = e^(0.0344)}}}


{{{r =  e^(0.0344) - 1}}}


r = 0.035 = 3.5%