Solve the Problem. -If an Amount of Money, Called the Principal, P, Is

Multiple Choice

Solve the problem.
-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
A = P(1 + r) 2. If a principal amount of $4000 grows to $5198.40 in two years, what is the interest rate?

A) 14%
B) 16%
C) 12%
D) 15%