Question

(Compound value for solving r) At what annual rate would the following be invested ?

a. $510 to grow to $1,229.02 in 13 years

b. $300 to grow to $548.41 in 7 years

c.$49 to grow to $422.03 in 19 years

d.$200 to grow to $253.06 in 6 years

A.) At what annual rate would 510 have to be invested to grow to 1,229.02 in 13 years ? ()% round to nearest whole perecent

Repeat same process for B,C and D.

Answer 1

a.	Future Value		=	Present Value *(1+i)^n			Where,
	1229.02		=	510*(1+i)^13			i	Interest rate
	2.4098		=	(1+i)^13			n	Life in years
	2.4098^(1/13)		=	1+i
	1.069998		=	1+i
	i		=	0.069998
	Thus,
	Annual rate		7.00%
b.	Future Value		=	Present Value *(1+i)^n			Where,
	548.41		=	300*(1+i)^7			i	Interest rate
	1.8280		=	(1+i)^7			n	Life in years
	1.8280^(1/7)		=	1+i
	1.089997		=	1+i
	i		=	0.089997
	Thus,
	Annual rate		9.00%
c.	Future Value		=	Present Value *(1+i)^n			Where,
	422.03		=	49*(1+i)^19			i	Interest rate
	8.6129		=	(1+i)^19			n	Life in years
	8.6129^(1/19)		=	1+i
	1.120001		=	1+i
	i		=	0.120001
	Thus,
	Annual rate		12.00%
d.	Future Value		=	Present Value *(1+i)^n			Where,
	253.06		=	200*(1+i)^6			i	Interest rate
	1.2653		=	(1+i)^6			n	Life in years
	1.2653^(1/6)		=	1+i
	1.039997		=	1+i
	i		=	0.039997
	Thus,
	Annual rate		4.00%