Question

You have 15,000 to deposit in an account. You want it to be worth 20,000 in 5 years. What's the lowest interest rate? Round to the nearest 0.5%

Answer 1

The lowest interest rate you would need to earn in order to have 15,000 become 20,000 in 5 years is 6.5%. This is based on the compound interest formula, where you would need to multiply the original amount by the interest rate (15,000 x 0.065 = 975) and add that amount to the original amount to equal your desired total (15,000 + 975 = 20,000).