SOLUTION: P dollars invested at interest rate r compounded annually for 5 years increases to an amount A = P(1 + r)^5. If an investment of $1000 is to increase to an amount greater than $140

Question 241518: P dollars invested at interest rate r compounded annually for 5 years increases to an amount A = P(1 + r)^5. If an investment of $1000 is to increase to an amount greater than $1400 in 5 years, then the interest rate must be greater than what percentage?
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!

Take the log base 10 of both sides

The interest rate has to be greater than 7%

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