SOLUTION: At what interest rate, compounded annually, must ₱20,000 be invested in order to earn an interest worth ₱2,300 in 6 years?

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Question 1175913: At what interest rate, compounded annually, must ₱20,000 be invested in order to
earn an interest worth ₱2,300 in 6 years?
Answer by ikleyn(52817) About Me  (Show Source):
You can put this solution on YOUR website!
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At what interest rate, compounded annually, must ₱20,000 be invested in order to
earn an interest worth ₱2,300 in 6 years?
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    20000 + 2300 = 20000%2A%281%2Br%29%5E6


    22300 = 20000%2A%281%2Br%29%5E6


    22300%2F20000 = %281%2Br%29%5E6


    1.115 = %281%2Br%29%5E6.


Take the 6-th root of both sides


    (1.115)^(1/6) = 1 + r


    1.018308 = 1 + r


    r = 1.018308 - 1 = 0.018308 = 0.018 (rounded) = 1.8%.       ANSWER

Solved.