John has 5,000 to invest in a saving account that has interest compounded annually. If he wants his money to double in 8 years what percent must the interest rate be on the account?

Question

Elaina Caldwell

Mathematics

31 October, 13:17

John has 5,000 to invest in a saving account that has interest compounded annually. If he wants his money to double in 8 years what percent must the interest rate be on the account?

+5

Answers (2)

Know the Answer?

Leia Hoover · Answer 1

Answer: The interest rate is 6.25%

Step-by-step explanation:

You have to use the formula interest x 100 / Principal x Time which is 5,000 x 100/8 x 10,000 which will give 6.25%.

Ramon Rush · Answer 2

hi

5 000 * X ^ (8) = 10 000

x^ (8) = 10 000 / 5000

x ^ (8) = 2

x = 2^ (1/8)

x≈ 1.09

intrest rate must be 9%