Question 1170325
the formula to use if f = p * (1 + r) ^ n
f is the future value
p is the present value
r is the interest rate per time period
n is the number of time period.


in your problem, the formula becomes:
228,980 = 200,000 * (1 + r) ^ 2


divide both sides of the equation by 200,000 and take the second root of both sides of the equation and subtract 1 from both sides of the equation, in that order, to get:


(228,980/200,000) ^ (1/2) - 1 = r
solve for r to get:
r = .07


he must invest 200,000 at 7% per year, compounded annually, to have 228,980 in 2 years.


200,000 * (1.07) ^ 2 = 228,980.


7% per year is your answer.