Question

a company invest 15000 in an account that compounds interest annually after 2 years the account is worth 160099.44. use the function 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

Answer 1

Hey there :)

We all know the formula of simple interest
I = prt { You can take a look at the picture attached to see what each stands for }

Given are initial amount invested → $15000
period of time → 2 years
Amount after 2 years → $16099.44

I = Amount as final - Initial
= $1099.44

We need to find the interest
1099.44 = 15000( 2 ) r
1099.44 = 30000r

`(1099.44)/(30000)= (30000r)/(30000)`
r = 0.036648

Rate as percentage = 0.036648 x 100 = 3.6648%

The interest rate of the account is 3.6648%