Problema Solution
The formula A=P(1+r)2 gives the amount of 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 $4000 to grow to $ 4452.10 in 2 years.
Answer provided by our tutors
4452.1 = 4000(1+r)^2
r= 0.055
so, r= 5.5 % is the answer for this.
so, in percentage form its 5.5%
and in decimal form its 0.055