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. 1.04%
B. 3.6%
C. 5.4%
D. 7.3%

Question

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. 1.04%
B. 3.6%
C. 5.4%
D. 7.3%

inkyvoyd · Answer

15000*(x^2)=16099.44
Solve for x, that is your answer. X is positive, and don't forget to take the square root.