If you deposit $12,123 dollars into a savings account, what interest would you need to be...

If you deposit $12,123 dollars into a savings account, what interest would you need to be earning to have $16,642 dollars in the same account 4 years later?

Answer as a percent and to the nearest hundredth of a percent as in xx.xx % and enter without the percent sign.

Solutions

Expert Solution

r = (FV / PV)^(1/t) - 1

r = ($16,642 / $12,123)^(1/4) - 1

r = 0.0824 or 8.24%

jeff jeffy answered 2 years ago

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