What interest rate will cause $4000 to grow to $4410.00 in 2 years?

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Answer 1 · 2016-05-02T15:02:30

The formula for interest (since yours isn't compounded) is #A = Pe^(rt)#

#4410 = 4000 xx e^(2r)#

#1.1025 = e^(2r)#

#ln(1.1025) = ln(e^(2r))#

#ln(1.1025) = 2rln(e)#

#(ln(1.1025)/2) = r#

#0.04879 = r#

to find the percentage, however, we must multiply by 100, giving us our final answer of #5%# interest per year.

Hopefully this helps!