The Formula $\mathrm{A}=\mathrm{P}(1+\mathrm{r})^{2}$ Gives the Amount $\mathrm{A}$ In Dollars That $\mathrm{P}$ Dollars Will Grow to in 2 Years at Interest Rate

Multiple Choice

The formula $\mathrm{A}=\mathrm{P}(1+\mathrm{r}) ^{2}$ gives the amount $\mathrm{A}$ in dollars that $\mathrm{P}$ dollars will grow to in 2 years at interest rate $r$ (where $r$ is given as a decimal) , using compound interest. Use the formula $A=P(1+$ r) ${ }^{2}$ to find what the rate of interest is if a principal amount of $\$ 4000$ grows to $\$ 5017.60$ in 2 years, if interest is compounded annually.

A) $12 \%$
B) $13 \%$
C) $10 \%$
D) $14 \%$