Asked by Faith

Use A = P(1+r)^t to find the interest rate.

$2000 grows to $2420 in 2 years.

I have no idea how to go about this problem! Your help is appreciated. Thank you!!

Answers

Answered by drwls
You want to solve for r

2420 = 2000 (1+r)^t
(1+r)^2 = 2420/2000 = 1.21
1+r = sqrt(1.21) = 1.10

r = 0.10 = 10%
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