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At what annual interest rate, compounded annually, would $490 have to be invested for it to...

At what annual interest rate, compounded annually, would $490 have to be invested for it to grow to $2.009.48 in 13 years?
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Answer #1
We can use the Future value of sum formula to calculate the annual interest rate.
FV = P x (1+r)^n
FV = Future value of investment = $2009.48
P = Investment amount = $490
r = annual interest rate = ?
n = number of compounding periods = 13
2009.48 = 490 x (1+r)^13
4.10098 = (1+r)^13
r = 0.1146
Annual Interest rate = 11.46%
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