Answer
4.25%
Work Step by Step
$A = P(1+r)^2$
$2717 = 2500*(1+r)^2$
$2717/2500 =2500*(1+r)^2/2500$
$1.0868 = (1+r)^2$
$\sqrt {1.0868} = \sqrt {(1+r)^2}$
Since the amount of money grew, we know we want the positive interest rate (and not the negative interest rate).
$1.04249 = 1+r$
$1.04249-1 = 1+r-1$
$.04249 = r$
4.25%
