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21 July, 03:55

A deposit of $5000 was put into a savings account paying an annual interest r percent, compounded yearly. After 2 years, the balance in the account was $5644.53. What was the rate of interest?

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  1. 21 July, 07:23
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    5000 (1 +.01r) ² = 5644.53

    (1 +.01r) ² = 5644.53 / 5000

    1 +.01r = 1.0625

    .01r = 0.0625

    r = 6.25 percent
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