# SOLUTION: What rate of interest, to the nearest tenth of a %, compounded annually is needed for an investment of \$200 to grow to \$350 in 5 years? Thank you in advance for helping me set th

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 Click here to see ALL problems on Money Word Problems Question 177262This question is from textbook college algebras : What rate of interest, to the nearest tenth of a %, compounded annually is needed for an investment of \$200 to grow to \$350 in 5 years? Thank you in advance for helping me set this up and compute the answer. This question is from textbook college algebras Answer by jim_thompson5910(28598)   (Show Source): You can put this solution on YOUR website! Start with the compound interest formula where A is the return, P is the principal (the amount invested), r is the interest rate, n is the compound frequency, and t is the time (in years) Plug in , , , and Multiply Reduce Divide both sides by 200. Divide. Take the 5th root of both sides. Take the 5th root of 1.75 to get 1.118 (this is approximate) Subtract 1 from both sides. Combine like terms. So the answer is which is roughly 11.84% So the interest rate needed is about 11.84%