What rate of interest compounded anually must an investment earn in order for $8000 to grow to $20 000 in 10 years?

I have the beginning equation as But I don't know how to solve for x, x being the interest rate as a decimal.

Printable View

- Feb 23rd 2010, 06:48 PMneedhelpplease1exponential modelling help
What rate of interest compounded anually must an investment earn in order for $8000 to grow to $20 000 in 10 years?

I have the beginning equation as But I don't know how to solve for x, x being the interest rate as a decimal. - Feb 23rd 2010, 07:39 PMNOX Andrew
First, divide the equation by 8,000.

From here, take the 10th root of the equation.

Subtract 1 from the equation.

You can use a calculator to find a decimal approximation of the expression on the right.

In the context of the problem, we can ignore the negative answer.