SOLUTION: what interest rate compounded daily is required for a $22,000 investment to grow to $36,500 in 5 years?
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Question 391699: what interest rate compounded daily is required for a $22,000 investment to grow to $36,500 in 5 years?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the compound interest formula
Plug in , , and .
Multiply and to get .
Divide both sides by .
Evaluate to get .
Take the 1825th root of both sides.
Take the 1825th root of to get .
Subtract 1 from both sides.
Combine like terms.
Multiply boths sides by to isolate "r".
Multiply and to get .
Rearrange the equation.
Round to the nearest ten-thousandth.
So the interest rate is 9.85% (multiply by 100 to convert to a percentage)
If you need more help, email me at jim_thompson5910@hotmail.com
Also, feel free to check out my tutoring website
Jim
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