Question 452763: What annual interest rate must you get if you want $500 to grow into $814.45 in 10 years? Please round your answer to the nearest whole number of percents.
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! What annual interest rate must you get if you want $500 to grow into $814.45 in 10 years? Please round your answer to the nearest whole number of percents.
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You can use this formula: A=P(1+r)^n, P=initial investment, r=annual interest rate, A=amount accumulated after n years.
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For given problem:
814.45=500(1+r)^10
814.45/500=(1+r)^10
raise each side to the 1/10 power
1.05=1+r
r=1.05-1=.05
Ans:
5% is the annual interest rate must you get if you want $500 to grow into $814.45 in 10 years
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