Answer
$20.3\% = r$
Work Step by Step
RECALL:
The formula for the future value $A$ is:
$A=P(1+rt)$
where
P= principal amount borrowed
r = interest rate per year
t = time in years
Use the formula above, with $A=\$14060$, $P=\$10000$, and $t=2$, to obtain:
$\$14060 = \$10000(1+r \cdot 2)
\\\$14060 = \$10000(1+2r)$
Divide $\$10000$ on both sides of the equation to obtain:
$\frac{14060}{10000} = 1+2r
\\1.406 = 1+2r$
Subtract $1$ on both sides of the equation to obtain:
$0.406 = 2r
\\\frac{0.406}{2}=r
\\0.203=r$
Convert to percent to obtain:
$20.3\% = r$
