A company invests $15,000 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 amoount of money after t years. What is the interest rate of the account? A = P (1 + r)^t

Question

A company invests $15,000 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 amoount of money after t years.  What is the interest rate of the account?  A = P (1 + r)^t

tkhunny · Answer

You are given everything to solve this problem.  What is preventing you from substituting the known values and solving for 'r'?