Question

Ellie wants to double her savings

of $5000 by investing her money
for 20 years.
What interest rate does
she need to look for?
Give your answer to 1 d.p.

Answer 1

Answer: Interest rate she needs to look for is 5%

Explanation:

P = 5000

A = 5000*2 = 10,000

T = 20 yrs

R = ?

now

I = A-P

I = 10,000-5000

I = 5000

Now

R = 100*I/P*T

R = 100*5000/5000*20

so, R = 5%