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You have $20,000 to invest and need $40,000 in 8 years. What APR must your investment...

You have $20,000 to invest and need $40,000 in 8 years. What APR must your investment return over the 8 years to achieve your goal?

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Answer #1

We have the future value formula:

Where,
FV = Future value
PV = Present valu
i = APR or interest rate
n = Number of years invested.

Substituting the known values, we get:

OR

Therefore, the needed APR is 9.05%

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