Question

You need to turn $13,593 dollars into $18,359 dollars in 8 years. Assuming you make no extra deposits, what interest rate would you need from a bank in order to accomplish this

Answer 1

Answer: 3.83%

Step-by-step explanation:

$13,593 has to accrue to $18,359.

13,593 * ( 1 + r)⁸ = 18,359

( 1 + r)⁸ = 18,359/ 13,593

(1 + r)⁸ = 1.35062

1 + r = ⁸√1.35062

1 + r = 1.0383

r = 1.0383 - 1

r = 3.83%