Abigail is going to invest $98,000 and leave it in an account for 5 years. Assuming the interest is compounded annually, what interest rate, to the nearest tenth of a percent, would be required in order for Abigail to end up with $133,000?

Question

Talan Middleton

11 February, 15:17

+4

Answers (1)

Know the Answer?

Douglas Lin · Answer 1

A = P (1+r/n) ^ (nt)

133,000 = 98,000 (1+x/1) ^ (1 (5))

1.36 = (1+x) ^5

1.063 = 1+x

x =.063 or 6.3%