Interest rate. If P dollars are invested at 100 r percent compounded annually, at the end of 2 years it will grow to A = P 1 + r 2 . At what interest rate will $ 484 grow to $ 625 in 2 years? (Note: If A = 625 and P = 484 , find r .)
Interest rate. If P dollars are invested at 100 r percent compounded annually, at the end of 2 years it will grow to A = P 1 + r 2 . At what interest rate will $ 484 grow to $ 625 in 2 years? (Note: If A = 625 and P = 484 , find r .)
Solution Summary: The author calculates the interest rate at which the amount of 484 will increase to the sum of 625
Interest rate. If
P
dollars are invested at
100
r
percent compounded annually, at the end of
2
years it will grow to
A
=
P
1
+
r
2
. At what interest rate will
$
484
grow to
$
625
in
2
years? (Note: If
A
=
625
and
P
=
484
, find
r
.)
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