After Two Years, a $1000 Investment, Compounded Annually at Interest $1000 ( 1 + r ) ^ { 2 }$

question 56

Multiple Choice

After two years, a $1000 investment, compounded annually at interest rate r , will yield an amount of $1000 ( 1 + r ) ^ { 2 }$ . If the amount after two years is $1166.40, find the rate r . Round your answer to three decimal places.

• A) \(r = 2.080\)
• B) \(r = 0.080\)
• C) \(r = 0.166\)
• D) \(r = 1.080\)
• E) \(r = 1.166\)

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Definitions:

Dropout Rates

The percentage of individuals who discontinue an educational program before completion, often used as an indicator of educational system performance.

Internal

Pertaining to or situated within the interior of something; often refers to processes or factors occurring within an entity or organism.

External

Positioned outside or beyond an object or system, often referring to factors or influences that come from the outside of an individual or system.

Stable

Characterized by consistency, steadiness, and lack of significant change or fluctuation.