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11 February, 15:17

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?

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  1. 11 February, 17:48
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    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%
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