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Compount interest

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The formula A=P(1+r)^2 gives the amount A in dollars that P dollars will grow to in 2 years at interest rate r (where r is given as a decimal), using compound interest. What interest rate will cause $2000 to grow to $2247.20 in 2 years?

The interest rate is _____%

(Type an integer or a decimal. Round to the nearest tenth of a percent if needed)

A=P(1+r)^2
2247.20=2000(1+r/100)^2.

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Solution Summary

The solution finds the compound interest using the formula.

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