document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1004733>Question 1004733</A>: <I><SPAN STYLE=\"word-break: break-all;\"> What interest rate (compounded annually) is needed to enable an investment of $5000 to accumulate to $10000 in 12 years?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #621120 by </B><A HREF=/tutors/aboutme.mpl?userid=fractalier><B>fractalier(6550)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=fractalier><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=fractalier><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=621120\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> We use the formula<BR>\n" );
document.write( "A(t) = Ao * (1+r)^t<BR>\n" );
document.write( "Plugging in we get<BR>\n" );
document.write( "10000 = 5000(1+r)^12<BR>\n" );
document.write( "2 = (1+r)^12<BR>\n" );
document.write( "1+r = 2^(1/12)<BR>\n" );
document.write( "r = 2^(1/12) - 1 = 5.95% </SPAN>\n" );
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