Question

Ax[n]=P(1+r)^n find the rate of interest if principle amount of 55oo grows to 6655 in 2 years if interest is compounded annually

Answer 1

\[6655=5500(1+r)^2\] solve for \(r\)

Answer 2

divide by 5500
take the square root
subtract 1

Answer 3

wish my money grew like that!

Answer 4

ok i get 1.2

Answer 5

so .2 or 20 percent