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, where 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?
(1 point)
Responses

1.04%
1.04%

3.6%
3.6%

5.4%
5.4%

7.3%
To find the interest rate of the account, we can use the formula A = P(1 + r)^t, where A is the amount after t years, P is the principal, r is the interest rate, and t is the number of years.
Given:
P = $15,000.00
A = $16,099.44
t = 2 years
$16,099.44 = $15,000.00(1 + r)^2
$16,099.44/$15,000.00 = (1 + r)^2
1.073296 = (1 + r)^2
√1.073296 = 1 + r
1.0364 = 1 + r
r = 1.0364 - 1
r = 0.0364
Convert 0.0364 to percentage:
0.0364 * 100 = 3.64%
Therefore, the interest rate of the account is 3.6%. The closest answer choice is 3.6%.