annual interest rate if 8000 turned into 12500 in 5 years
12500/8000 = (1+r)^5
is this correct? how do you solve?
annual interest rate if 8000 turned into 12500 in 5 years
12500/8000 = (1+r)^5
is this correct? how do you solve?
Your annual interest rate will be: 9.34% compounded annually. The formula is:
FV=PV( 1 + R)^N
12,500=8,000(1+R)^5 divide both sides by 8,000
1.5625=(1+R)^5 take the 5th root of sides, or (1/5)
1+R=(1.5625)^1/5
1+R=1.0934 subtract 1 from each side
R=.0934 X100=9.34%
