Ratios & Percentageshard
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An investment fund grows such that the amount A(t)A(t) after tt years follows the relation A(t)=P(1+r)tA(t) = P(1 + r)^t. If the fund grows by 25%25\% in the first year and 20%20\% in the second year, what is the effective annual interest rate if the total growth over two years is equivalent to a constant annual rate kk?