Tin

Use the compound interest formula A=P (1+0) to find the annual interest rate, r. if in 2 years an investment of $4,000 gros to $4,840.

The rate is

%.

TEH

10%

Step-by-step explanation:

The appropriate formula for the future value of an account with compound interest is ...

A = P (1 + r) ^t

where r is the annual rate, and t is the number of years.

Fill in the given values and solve for r:

4840 = 4000 (1 + r) ^2

4840/4000 = (1 + r) ^2

√1.21 = 1 + r

1.1 = 1 + r

r = 1.1 - 1 = 0.10

r = 10%

The rate is 10%.