Question

Approximately interest rate to the nearest whole percentage would you need to earn in order to turn $3500 into $7000 over 10 years?

Answer 1

Step-by-step explanation:

FV = PV(1+i)^n

Where:

PV = 3,500

FV = $7,000

n = 10

i = ?

Now putting values in the formula:

$7,000 = $3,500(1+i)^10

2 = (1+i)^10

1+i = 2^0.1

1+ i = 1.071773463

i = 0.071773463 = 7.177%