SOLUTION: Road Runner just bought stock in the new Acme bird feeder company. he invested $3000 and plans to double his money to $6000 in 5 years. What must be the interest rate be for Road t

Question 816232: Road Runner just bought stock in the new Acme bird feeder company. he invested $3000 and plans to double his money to $6000 in 5 years. What must be the interest rate be for Road to accomplish his goal?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Road Runner just bought stock in the new Acme bird feeder company. he invested $3000 and plans to double his money to $6000 in 5 years. What must be the interest rate be for Road to accomplish his goal?
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Assuming he invested at simple interest:
A(t) = P(1+rt)
6000 = 3000(1+r*5)
1+5r = 2
5r = 1
r = 1/5 = 20%
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Cheers,
Stan H.
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