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

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%