The Amount a in an Account Earning R Percent (In $A = P ( 1 + r ) ^ { 2 }$

Multiple Choice

The amount A in an account earning r percent (in decimal form) compounded annually for two years is given by $A = P ( 1 + r ) ^ { 2 }$ where P is the original investment. What is the interest rate r , as a percent, if the amount in the account is $235.44 and the original investment was $208 ? Round your answer to two decimal places.

A) 5.89 %
B) 6.89 %
C) 6.39 %
D) 5.39 %
E) 7.39 %