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You invest $x today at 8% APR compounded annually for 5 years (you invest only once)....

You invest $x today at 8% APR compounded annually for 5 years (you invest only once). Your friend also invests some amount at the same time at 8% APR compounded annually for 5 years. However, she invests an additional amount equal to the accumulated interest at the end of each year. You both end up having the same amount at the end of 5 years. In order to achieve this, your initial investment must have been t times as much as your friend’s. What is t ?

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Rahul Sunny answered 2 years ago
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