document.write( "Question 1075013: Suppose you invest $6,000 and would like your investment to grow to $8,000 in five years. What interest rate, compounded monthly, would you have to earn in order for this to happen? \n" ); document.write( "

Algebra.Com's Answer #689728 by jorel1380(3719) $\"\"$ $\"About$

You can put this solution on YOUR website!
8000/6000=1.333
\n" ); document.write( "In order for your money to grow by 1/3 in 5 years, you need:
\n" ); document.write( "4/3=(1+r/12)^60
\n" ); document.write( "ln 4/3= ln(1+r/12)^60
\n" ); document.write( "ln 4/3=60 ln(1+r/12)
\n" ); document.write( "0.00479470120752968212398698343323=ln (1+r/12)
\n" ); document.write( "e^0.00479470120752968212398698343323 = e^ln (1+r/12)
\n" ); document.write( "1.0048062141804317245207735522828 = l+r/12
\n" ); document.write( "r=0.05767457016518069424928262739328
\n" ); document.write( "Your yearly interest rate needs to be about 5.7674% in order for your money to grow by 1/3 in 5 years. \n" ); document.write( "

\n" );