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Andrei [34K]
2 years ago
13

You are saving money to buy a used car. You deposit $2,500 in an account that earns interest compounded annually. The expression

2500(1+r)^2 represents the balance after 2 years, where r is the annual interest rate in decimal form
Mathematics
1 answer:
seraphim [82]2 years ago
6 0

Answer:

r= [(\frac{A}{2500}) ^\frac{1}{2} -1]

Step-by-step explanation:

Given data

Principal = $2500

time t= 2 years

Required

the rate r

Given the expression for the balance 2500(1+r)^2

Hence

A= 2500(1+r)^2

we can make r subject of formula

r= [(\frac{A}{P}) ^\frac{1}{t} -1]

r= [(\frac{A}{2500}) ^\frac{1}{2} -1]

Hence, for any value of A, we can find the rate using the expression above

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