SOLUTION: At what interest rate, compounded annually, must ₱20,000 be invested in order to earn an interest worth ₱2,300 in 6 years?

Question 1175913: At what interest rate, compounded annually, must ₱20,000 be invested in order to
earn an interest worth ₱2,300 in 6 years?
Answer by ikleyn(52818) (Show Source): You can put this solution on YOUR website!
.
At what interest rate, compounded annually, must ₱20,000 be invested in order to
earn an interest worth ₱2,300 in 6 years?
~~~~~~~~~~~~~~~

    20000 + 2300 = 


    22300 = 


     = 


    1.115 = .


Take the 6-th root of both sides


    (1.115)^(1/6) = 1 + r


    1.018308 = 1 + r


    r = 1.018308 - 1 = 0.018308 = 0.018 (rounded) = 1.8%.       ANSWER

Solved.

RELATED QUESTIONS
At what simple interest rate must your deposit of ₱35,000 be credited if you want to... (answered by ikleyn)

If $1,000 is invested now, $1,500 two years from now, and $2,000 four years from not at... (answered by JBnovelwriter,MathTherapy)

If $ 110000 is to grow to $ 250000 in ten years period, at what annual interest rate must (answered by josgarithmetic)

How much money should be invested at an anual rate of 12% in order to earn $300 interest... (answered by checkley71)

$1500 was invested for 2 years in an account that pays interest compounded annually. What (answered by ewatrrr)

1. Ellen has $8000 to invest in an RESP (Registered Education Savings Plan) for 7 years.... (answered by josmiceli)

At what rate of interest must a principal of $1545 be invested to earn interest of 58.93... (answered by Alan3354,Theo)

How much interest will be paid in 2 years for a loan of Php 20 000 at an interest rate of (answered by mark_henrhiz)

If P20,000 invested at interest compounded annually amounts to P21,218 in two years, what (answered by math_helper)