Lenny D. answered • 05/29/19
Tutor
4.8
(563)
Former professor at Tufts University with decades on Wall Street
2500 dollars grows to $3025 in two years. how can i find the interest rate using the formula a=p(1+r)^t
3025=2500(1+r)^t or 3025/2500 = (1+r)^T or (3025/2500)^(1/T) = 1+r. Here, T = 2 so
1+r = Sqrt(3025/2500)= 1.1 or i - .1 or 10%
