SOLUTION: a college student invests $8000 in an account that pays interest annually. If the student would like this investment to be worth $1000000 in 45 years, what annual interest rate wou
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Question 599916: a college student invests $8000 in an account that pays interest annually. If the student would like this investment to be worth $1000000 in 45 years, what annual interest rate would the account need to pay?
Answer by prayerwarrior82b(1) (Show Source): You can put this solution on YOUR website!
R - interest rate;
1 000 000 = 8000 (1+R)^45;
R = (1000000 / 8000)^(1/45) -1 = 0.113 = 11.3%
Answer: 11.3%
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