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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?

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  1. 31 October, 13:32
    0
    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%.
  2. 31 October, 13:45
    0
    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%
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