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mina [271]
3 years ago
13

If P dollars are invested today at an annual interest rater compounded once a year, then the value of the account A after 2 year

s is given by the formula A - P(1 + r)? Find the rate of interest required
to turn an investment of $1900 into $2200 after 2 years
***
Mathematics
1 answer:
Molodets [167]3 years ago
3 0

9514 1404 393

Answer:

  about 7.61%

Step-by-step explanation:

Put the given numbers into the formula and solve for r.

  2200 = 1900(1 +r)^2

  √(22/19) = 1 +r

  r = √(22/19) -1 ≈ 0.076055 ≈ 7.61%

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