Question

Find the annual interest rate I=$16 P=$200 T=2 years

Answer 1

0.0392 or 3.92%
The exponential growth formula can find the interest rate.
$y=a(1+r)^{x}$
y - tolat value (P +I) (216)
a - principal (200)
r- rate (unkown)
x -  time in years (2 yrs)
Substitute known values
$216=200(1+r)^{2}$
divide both sides by 200
$1.08=(1+r)^{2}$
take the square root of both sides
$1.0392=1+r$
subtract 1 on both sides
r = 0.0392 or 3.92%