Solve.
-Use the formula $\mathrm { A } = \mathrm { P } ( 1 + \mathrm { r } ) ^ { \mathrm { t } }$. Find the rate, $\mathrm { r }$, at which $\$ 1400$ grows to $\$ 1573$ in 2 years.
A) $7 \%$
B) $5 \%$
C) $6 \%$
D) $12 \%$

Question

Quizplus · Accepted Answer

Using the formula $ A = P(1 + r)^t $, we have $ 1573 = 1400(1 + r)^2 $. Solving for $ r $, we get $ (1 + r)^2 = \frac{1573}{1400} \approx 1.12357 $. Taking the square root gives $ 1 + r \approx 1.06 $, so $ r \approx 0.06 $ or $ 6\% $.

Solve -Use the Formula A=P(1+r)t\mathrm { A } = \mathrm { P } ( 1 + \mathrm { r } ) ^ { \mathrm { t } }A=P(1+r)t

Solve
-Use the Formula $\mathrm { A } = \mathrm { P } ( 1 + \mathrm { r } ) ^ { \mathrm { t } }$