Question

An account had an initial deposit made and then interest was applied once a year at a fixed rate. The amount of money, in dollars, in the account after t years, was 103(1.02)t. What was the annual interest rate?

Answer 1

general formula for compound interest:

A = P(1+r)^t

where A is the final amount, P is the principal (initial amount), r is the interest rate as a decimal, and t is time

compare this to your formula to evaluate what r is