Question

If you invest $2,000 what interest rate do you need for your money to become 10,000 in 20 years

Answer 1

The principal money is P=2000.

The time is t=20 years.

The value of amount is A=10,000.

Determine the intrest obtained on the principal amount.

`\begin{gathered} A=I+P \\ 10000=I+2000 \\ I=10000-2000 \\ =8000 \end{gathered}`

The formula for the intrest on the principal money is,

`I=(P* R* t)/(100)`

Substitute the values in the formula to obtain the rate percentage.

`\begin{gathered} 8000=(2000* R*20)/(100) \\ R=(8000)/(400) \\ =20 \end{gathered}`

The value of intrest rate is 20%.