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

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) $r = 1.166$