If an Amount of Money, Called the Principal, P, Is $\mathrm { A } = \mathrm { P } ( 1 + \mathrm { r } ) ^ { 2 }$

question 171

Multiple Choice

If an amount of money, called the principal, P, is deposited into an account that earns interest at a rate r, compounded annually, then in two years that investment will grow to an amount A, given by the formula $\mathrm { A } = \mathrm { P } ( 1 + \mathrm { r } ) ^ { 2 }$ If a principal amount of $4500 grows to $5445.00 in two years, what is the interest rate?

• A) 12%
• B) 10%
• C) 8%
• D) 11%

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Definitions:

Negative Feedback

A regulatory mechanism in biological and mechanical systems where the output of a process is fed back in a manner that reduces the fluctuations in the output.

Stable In Blood

Refers to a substance that remains unchanged or is consistently maintained in the bloodstream.

Up-regulation

The process by which a cell increases the quantity of a cellular component, such as RNA or protein, in response to an external stimulus.

Amplification

In a biological context, the process by which a signal is intensified, as in the enhancement of a signal in a biochemical pathway.