Question

At the end of 2 years, P dollars invested at an interest rater compounded annually increases to an amount, A dollars, given by the following formula.

A = P(1+r)?
Find the interest rate if $192 increased to $363 in 2 years. Write your answer as a percent..
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Annual compound interest rate = % (Type an integer or a decimal.)

Answer 1

37.5%

Explanation:

A=P(1+r)^t

363=192*(1+r)^2

1.375=1+r, r=0.375=37.5%