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Suppose a deposit of $ 2 , 000 in a savings account that paid an annual interest rate r (compounded yearly) is worth $ 2 , 209 after 2 years. using the formula a = p ( 1 + r ) t , we have 2 , 209 = 2 , 000 ( 1 + r ) 2 solve for r to find the annual interest rate (to the nearest tenth).

Respuesta :

semsee45

Answer:

5.1% (nearest tenth)

Step-by-step explanation:

Annual Compound Interest Formula

[tex]\large \text{$ \sf A=P\left(1+r\right)^{t} $}[/tex]

where:

  • A = final amount
  • P = principal amount
  • r = interest rate (in decimal form)
  • t = time (in years)

Given:

  • A = $2,209
  • P = $2,000
  • t = 2 years

Substitute the given values into the formula and solve for r:

[tex]\implies \sf 2209=2000\left(1+r\right)^{2}[/tex]

[tex]\implies \sf \dfrac{2209}{2000}=(1+r)^2[/tex]

[tex]\implies \sf 1.1045=(1+r)^2[/tex]

[tex]\implies \sf \sqrt{1.1045}=1+r[/tex]

[tex]\implies \sf r = \sqrt{1.1045}-1[/tex]

[tex]\implies \sf r = 0.05095194942...[/tex]

[tex]\implies \sf r = 5.095194942...\%[/tex]

Therefore, the annual interest rate is 5.1% (nearest tenth)

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