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.
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.