Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

What interest rate would be necessary to obtain $5,500 in 7 years if $4,000 is the amount of the original investment and the interest is compounded yearly?.

Sagot :

sandlee09

Given what we know, we can confirm that the interest rate necessary to reach $5500 in 7 years with a starting investment of $4000 on a yearly compounded interest, would be 4.7%.

Why is this the required interest rate?

Since the question did not specify any extra data to be taken into account, such as:

  • Interest variance
  • Monthly or yearly contributions
  • Inflation rates

and so on, we can assume that all of these values are null. Therefore, if we take $4000 and add 4.7%, and repeat that every time using our new totals, after 7 repetitions we are left with close to $5500, which is our goal.

Therefore, we can confirm that the interest rate necessary to reach $5500 in 7 years with a starting investment of $4000 on a yearly compounded interest, would be 4.7%.

To learn more about interest rates visit:

https://brainly.com/question/4626564?referrer=searchResults

We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.