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18 May, 13:55

What interest rate (the nearest percent) must Charlie earn on a $362000 investment today so that he will have $1126000 after 10 years?

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  1. 18 May, 14:21
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    12%

    Explanation:

    A = P (1+r) ^n

    A (amount) = $1126000

    P (principal) = $362000

    n = 10 years

    1126000 = 362000 (1+r) ^10

    1126000/362000 = (1+r) ^10

    (1+r) ^10 = 3.1

    1+r = 3.1^0.1

    1+r = 1.12

    r = 1.12 - 1 = 0.12 = 12%
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