Question

I can't figure this out, please help...
A company invests $15,000.00 in an account that compounds interest annually. After two years, the account is worth $16,099.44. Use the function in which r is the annual interest rate, P is the principal, and A is the amount of money after t years. What is the interest rate of the account? A = P(1 + r)t
• 1.04%
• 3.6%
• 5.4%
• 7.3%

Answer 1

15000(1+r)^2 = 16099.44
(1+r)^2 = 1.073296
1+r = 1.036
r = 0.036

So, the rate is 3.6%

Answer 2

3.6%