You have $2000 to invest in an account and need to have $2500 in five years. What annual interest rate would you need to have in order to have this if the amount is compounded monthly?

a) 4%

b) 2%

c) 5%

d) 3%

Question

Dane Kirk

31 December, 07:28

+2

Answers (1)

Know the Answer?

Genesis Browning · Answer 1

c) 5%

Step-by-step explanation:

A = $ 2,566.72

A = P + I where

P (principal) = $ 2,000.00

I (interest) = $ 566.72

You have $2000 to invest in an account and need to have $2500 in five years. What annual interest rate would you need to have in order to have this if the amount is compounded monthly?a) 4%b) 2%c) 5%d) 3%