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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