SOLUTION: "If an investment of $2000 grows to $2814.20 in seven years with interest compounded annually, what is the interest rate?
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Question 1088922: "If an investment of $2000 grows to $2814.20 in seven years with interest compounded annually, what is the interest rate? Found 2 solutions by Boreal, MathTherapy:Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 2840=2000(1+r)^7
divide both sides by 2000
1.42=(1+r)^7
ln(1.42)=7 ln (1+r)
rounding only at the end, divide by 7 both sides
ln (1+r)=0.0500
raise both sides to the e power
(1+r)=1.0514
r=0.0514 or 5.14%
check
1.0514^7=1.4202, within rounding error.
You can put this solution on YOUR website! "If an investment of $2000 grows to $2814.20 in seven years with interest compounded annually, what is the interest rate?
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