Final answer:
The annual compound interest rate required for the debt to grow by 48% in 12 years is approximately 3.64%.
Step-by-step explanation:
To find the annual compound interest rate required for the debt to grow by 48% in 12 years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
We know that A/P = 1 + r, and in this case, the ratio is 1.48. So, we have:
1.48 = (1 + r/n)^(n*12)
We can solve for r by using trial and error or by using a graphing calculator. By plugging in different values for r until we get a result close to 1.48, we find that the annual compound interest rate required is approximately 3.64%.