document.write( "Question 477779: I had made a 5 year investment of N$ 50000, and earns N$ 120000,what was the prevailing interest rate than? \n" ); document.write( "

Algebra.Com's Answer #327376 by Theo(13342) $\"\"$ $\"About$

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you invest 50,000 and get back 120,000 in 5 years.
\n" ); document.write( "if you compound annually, then the interest rate on your investment is:
\n" ); document.write( "50,000 * (1+x)^5 = 120,000
\n" ); document.write( "divide both sides of this equation by 50,000 to get:
\n" ); document.write( "(1+x)^5 = 12/5
\n" ); document.write( "take the 5th root of each side of this equation to get:
\n" ); document.write( "1+x = 1.191357898
\n" ); document.write( "subtract 1 from both sides of this equation to get:
\n" ); document.write( "x = .191357898
\n" ); document.write( "that's your annual interest rate.
\n" ); document.write( "50,000 * (1+.191357898)^5 equals 50,000 * (1.191357898)^5 which gets you 120,000 as it should.
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