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You are saving money to buy a used car. You deposit $2,500 in an account that earns interest compounded annually. The expression 2500(1+r)^2 represents the balance after 2 years, where r is the annual interest rate in decimal form

Answer :

samuelonum1

Answer:

[tex]r= [(\frac{A}{2500}) ^\frac{1}{2} -1][/tex]

Step-by-step explanation:

Given data

Principal = $2500

time t= 2 years

Required

the rate r

Given the expression for the balance 2500(1+r)^2

Hence

[tex]A= 2500(1+r)^2[/tex]

we can make r subject of formula

[tex]r= [(\frac{A}{P}) ^\frac{1}{t} -1][/tex]

[tex]r= [(\frac{A}{2500}) ^\frac{1}{2} -1][/tex]

Hence, for any value of A, we can find the rate using the expression above

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