Question

If you deposit $13,808 dollars into a savings account, what interest would you need to be...

If you deposit $13,808 dollars into a savings account, what interest would you need to be earning to have $19,684 dollars in the same account 5 years later?

Answer as a percent and to the nearest hundredth of a percent as in xx.xx % and enter without the percent sign.

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Answer #1

Invested Amount in Saving account = $13,808

Future value = $19,684

-Calculating the Annual rate of Interest that would be earned to accumulated the amount:-

Where,

r = Interest rate =

n= no of periods = 5 years

Taking 5-root on both sides,

1.073486 = (1+r)

r = 7.35%

So,Annual rate of Interest is 7.35%

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