Danielle is planning to invest 3000 into a savings account which compounds interest yearly.What interest rate per annum is needed for her investment to reach 6000 after 6 years?

Solution

Solution

Rate : 12.24620 \dots %

Solution steps

Translate the problem into an equation:

6000 = 3000 (1 + \frac{r}{1})^{1 \cdot 6}

Solve for

r, 6000 = 3000 (1 + \frac{r}{1})^{1 \cdot 6} : r = 12.24620 \dots %

Rate : 12.24620 \dots %

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