EXPLANATION:
To find r (annual interest rate); we must solve the formula in the following way:
A= Is the final value that would be obtained after two years
P=It is the current value that you have
T=Number of periods or time
[tex]\begin{gathered} A=P(1+r)^t \\ To\text{ find r} \\ r=(\frac{A}{P})^{\frac{1}{T}}\text{ -1} \\ \text{Now we must }replace\text{ }the\text{ values }given\text{ in the exercise;} \\ r=(\frac{3339}{3000})^{\frac{1}{2}}-1 \\ r=(1.113)^{0.5}-1 \\ r=1.054-1 \\ r=0.054 \\ \text{ANSWER: The annual interest rate is 0.054 and }in\text{ percentage is} \\ 0.054\times100=5.4\text{ percent} \end{gathered}[/tex]
