WP7-Find interest rate based on investment formula
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Lesson Description:
This is a Word Problem you solve by writing an equation and factoring. Word Problem 7 - Investment problem-At the end of 2 years, P dollars invested at an interest rate r compounded annually increases to an amount, A dollars, given by a formula shown in video. Find the interest rate if $2000 increased to $2420 in 2 years. Write the answer as a percent.
More free YouTube videos by Julie Harland are organized at http://yourmathgal.com
Questions answered by this video:
- How do you solve investment word problems in math?
- How do you write and solve a quadratic equation involving the equation A = P(1 + r)^2?
- How can you find the interest rate if a $2000 investment increased to $2420 in two years?
- How do you solve the equation 2420 = 2000(1 + r)^2?
- How do you solve a quadratic equation if it does not equal zero?
- How do you factor and solve 0 = 2000r^2 + 4000r - 420?
- How do you know when you can eliminate an answer that does not make sense in a word problem?
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Staff Review
Investment problems like this one are very common in math, and this video shows the method for writing out the equation as well as solving it. This is a must-watch tutorial for anyone learning to solve investment problems.
