Answer: the answer is r=7.5%
Step-by-step explanation:
You get the formula A=P(1+nr) where A is the accumulated amount: 5750, P is the principal: 5000, n is the amount of years: 2, and r is the rate: unknown
Now you plug in what you know:
5750=5000(1+2r)
Divide 5000 on both sides
Decimal form: 1.15=1+2r
Subtract -1 on both sides
0.15=2r
And lastly divide by 2 on both sides
0.075=r
BUT WHEN FINDING THE RATE ALWAYS MAKE IT A PERCENTAGE
r=0.075*100=7.5%
