# What interest rate will cause \$6000 to grow to \$6741.60 in 2 years?

User Generated

UnybYbir

Mathematics

### Question Description

The formula A=P1+r2 gives the amount A in dollars that P dollars will grow to in 2 years at interest rate r where r is given as a decimal), using compound interest. What interest rate will cause \$6000 to grow to \$6741.60 in 2 years?

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Ok Let me make it simpler for you.

This is how we write it

P = principal amount (the initial amount you borrow or deposit)

r  = annual rate of interest (as a decimal)

t  = number of years the amount is deposited or borrowed for.

A = amount of money accumulated after n years, including interest.

n  =  number of times the interest is compounded per year

The  formula is

A= P(1 +r/n) ^nt

\$6741.60= \$6000(1 +r/1) ^1 x 2

\$6741.60=\$6000(1+r)^2

\$6741.60=\$6000 (1+r) (1+r)

\$6741.60=\$6000 (1+2r+r^2)

Evaluate the RHS

\$6741.60=\$6000+\$12000r +\$6000r^2

Subtract \$6000 both sides

\$741.6=\$12000r +\$6000r^2

Solve by completing the square

Which 2 numbers do you add to get 12000 and multiply to get 6000

Am still working on the last part Please give me a few minutes you will have the remaining part

avpubynfXvz (1253)
Duke University
Review
Review

Anonymous
Just what I needed…Fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4