Question

Un planificador financiero le ha ofrecido una nuevo producto de inversión que requiere una inversión inicial de $42,000, y luego 20 años más tarde el valor de su inversión será $200,000. ¿Qué tasa de interés usted ganará en esta inversión? .

Answer 1

After translating the problem :-
A financial planner has offered you a new investment product that requires an initial investment of $ 42,000, and then 20 years later the value of your investment will be $ 200,000. What interest rate will you earn on this investment?

Given,

Initial investment = $42000

No. of years (n) = 20 years

Future value = $200000

Solution :-

Interest rate = (future value initial investment)^1/n - 1

= ($200000 $42000)^1/20 - 1

= (4.7619047619)^0.05 - 1

= 1.0812 - 1 = 0.0812 or 8.12%

Thus, you will earn interest rate of 8.12% on this investment.