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Anni [7]
4 years ago
11

What is the rate at which $13,824 compounded annually grows to $20,184 in 2 years.

Mathematics
1 answer:
Y_Kistochka [10]4 years ago
8 0
P = principal amount = <span>$13,824
</span>t = time = 2 years 
A = final amount = <span>$20,184
</span>
 $20,184 = ($13,824)(1 + r)^2
(1 + r)^2 = $20,184/$13,824 
(1 + r)^2 = about 1.46 
1 + r = \sqrt{1.46}
1 + r = about 1.2 
r = 1.2 - 1 
r = 0.2 

so about 20% annually
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