Homework Help: Math

Posted by carmelo on Friday, March 15, 2013 at 10:22am.

A company invests $15,000.00 in an account that compounds interest annually. After two years, the account is worth $16,099.44. Use the function in which r is the annual interest rate, P is the principal, and A is the amount of money after t years. What is the interest rate of the account? A = P(1 + r)t

A.) 1.04%
*B.) 3.6%
C.) 5.4%
D.) 7.3%

Thanks.

Math - Reiny, Friday, March 15, 2013 at 11:05am
16099.44 = 15000(1+i)^2
1.073296 = (1+i)^2
1+i = √1.073... = 1.036
i = .036 or 3.6%

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