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?
Thank you for the opportunity to help you with your question!
Ok Let me make it simpler for you.
This is how we write it
amount (the initial amount you borrow or deposit)
= annual rate
of interest (as a decimal)
= number of
years the amount is deposited or borrowed for.
= amount of
money accumulated after n years, including interest.
= number of times
the interest is compounded per year
A= P(1 +r/n) ^nt
$6741.60= $6000(1 +r/1) ^1 x 2
$6741.60=$6000 (1+r) (1+r)
Evaluate the RHS
Subtract $6000 both sides
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
Wow! Great, thank you so much. Please let me know the remaining part. Thank you so much!
Lets do shorter method at this point
we divide both sides by $6000
Solving the equation gives using perfect squares
Changing it a percentage
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