# Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows

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## Question:

Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where

A = P(1 + i)^{t}.

Trevor's parents deposit $7800 in a savings account when Trevor is 16 years old. The principal plus interest is to be used for a truck when Trevor is 18 years old. Find the interest rate i if the $7800 grows to $9024.75 in 2 years?

**Related Book For**

## Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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