Question

If invests $12,672.32 now and she will receive $30,000 at the end of 10 years, what annual rate of interest will she be earning on her investment

Answer 1

Rate of interest (r) = 9%

Step-by-step explanation:

Given:

Amount invested (P) = $12,672.32

Future amount (A) = $30,000

Number of year (n) = 10

Find:

Rate of interest (r)

Computation:

A=P(1+r)ⁿ

30,000 = 12,672.32(1+r)¹⁰

2.3673=(1+r)¹⁰

1.090 = (1+r)

r = 0.09 or 9%

Rate of interest (r) = 9%