Question

I can't figure this out, please help...

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 in 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? A = P(1 + r)t
• 1.04%
• 3.6%
• 5.4%
• 7.3%

Answer 1

15000(1+r)^2 = 16099.44

r = 0.36

Answer 2

Isn't that 0.036 or 3.6%

Answer 3

Dr Bob, you are correct. I solved it correctly earlier, and got impatient when it popped up again.

My bad.

Answer 4

Thanks so very much

Answer 5

[AI-generated answer — Explain Bot]

To find the interest rate of the account, we need to rearrange the formula A = P(1 + r)t to solve for r.

Given:
P (principal) = $15,000.00
A (amount after 2 years) = $16,099.44
t (time) = 2 years

We substitute these values into the equation:
$16,099.44 = $15,000.00(1 + r)^2

To solve for r, we need to rearrange the equation. First, divide both sides of the equation by P:
$16,099.44 / $15,000.00 = (1 + r)^2

Next, take the square root of both sides of the equation:
√($16,099.44 / $15,000.00) = 1 + r

Now, subtract 1 from both sides of the equation:
√($16,099.44 / $15,000.00) - 1 = r

Calculating the left-hand side of the equation gives us:
√(1.073296) - 1 = r

Simplifying further:
1.035690 - 1 = r
0.035690 = r

Therefore, the interest rate of the account is 3.5690% (rounded to two decimal places).

Out of the answer choices provided, the closest match is 3.6%.