contestada

You would like an initial investment of $6,000 invested now to grow to $18,000 in 5 years. What interest rate (to the nearest tenth of a percent) must you earn to achieve your goal?

Respuesta :

Answer:

interest rate = 24.6%

Explanation:

given data

initial investment = $6,000

grow = $18,000

time = 5 years

solution

we get here interest rate by future value that is express as

future value = principal ×  [tex](1+r)^{t}[/tex]   ......................1

put here value and we get

$18,000 = $6,000  × [tex](1+r)^{5}[/tex]      

$3 = [tex](1+r)^{5}[/tex]  

solve it we get

r = 0.246  

interest rate = 24.6%

Otras preguntas