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 principle, and A is the amount of money after t years. What is the interest rate of the account? A=P(1+r)^t (1 point)

Answer 1

A= P(1+r)^t
16099.44= 15000(1+r)^2
16099.44/15000 = (1+r)^2

sqrt((16099.44/15000) = 1+ r
sqrt(166099.44/1500) -1 = r
r = 3.6%