You currently have $60,000 in your bank account and you will need a total of $100,000...

You currently have $60,000 in your bank account and you will need a total of $100,000 in 5 years to pay for a down payment on a house. What interest rate do you need to earn in order to have $100,000 in your bank account 5 years from now?

Solutions

Expert Solution

Future value of an amount deposited is computed as,

So, P = Initial amount

i = Interest rate

n = Number of years

So, interest rate is 10.757%

jeff jeffy answered 2 years ago

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