You plan to start your own business and are investing today to grow some seed money. You have 16912 to invest and aim to have 26087 in 9 years. What interest rate must you earn to meet your goal?

Solution

Solution

Rate : 6.02793 \dots %

Solution steps

Translate the problem into an equation:

26087 = 16912 (1 + r \cdot 9)

Solve for

r, 26087 = 16912 (1 + r \cdot 9) : r = 6.02793 \dots %

Rate : 6.02793 \dots %

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