college algebra

posted by .

John invests $2500 in an account that pays a rate r compounded annually. If after 2 years the total interest earned is $650, find the approximate rate of interest

  • college algebra -

    let the rate be i, where i is expressed as a decimal

    2500(1+i)^2 = 2500+650
    (1+i)^2 = 3150/2500 = 1.26
    take √ of both sides
    1+i = √1.26
    1+i = 1.12249
    i = .12249

    or 12.25% , Wow, I remember those good old days

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Algebra

    Greta invests $10,000 in an investment that pays 3% interest, compounded annually, for the first three years, then 9% interest, compounded annually, for the last three years. Rui invests $10,000 in an investment that pays r% for all …
  2. Algebra

    Need help with these 2 please-- 19. Nancy invests $100 in one account for 10 years at a 9% interest rate compounded annually, and she invests $150 in an account for 10 years at a 6% interest rate compounded semi-annually. How much …
  3. Algebra

    Need help with these 2 please-- 19. Nancy invests $100 in one account for 10 years at a 9% interest rate compounded annually, and she invests $150 in an account for 10 years at a 6% interest rate compounded semi-annually. How much …
  4. Algebra

    I'm really stuck on these 2. Can you please explain the work clearly so that I can understand and find the answer easily, if already not given. Need help with these 2 please-- 19. Nancy invests $100 in one account for 10 years at a …
  5. Algebra

    Show how you substitute the values into the formula, then use your calculator. *Use A = P(1+r/n)nt to find the amount of money in an account after t years, compounded n times per year. *Use I = Prt to find the amount of simple interest …
  6. Algebra Question~!

    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 principle, and A is the amount of money …
  7. Algebra

    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 …
  8. Algebra( check my answers)

    1. Juan deposited $200 in a savings account earning 3% interest over 2 years. What was the total amount of interest earned after 2 years?
  9. Algebra B

    I can't figure this out, please help... 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 …
  10. Lat math question for some days. Can y'all help?

    Huan deposited $850 into a college savings account earning 4.8% interest compounded annually. He also deposited $850 into a second account earning 4.8% simple interest. He made no additional deposits. After 10 years, which account …

More Similar Questions