If Eric wants $19,937 in 5 years, starting with $10,606 today, what interest would he need to earn...

If Eric wants $19,937 in 5 years, starting with $10,606 today, what interest would he need to earn if he were to use an interest-bearing account? You could just set this up and use algebra although Excel would also work.

Expert Solution

$19,937 = $10,606 * (1 + r)⁵

1.879785 = ( 1 + r)⁵

1 + r = 1.1345

r = 0.1345

r = 13.45%

jeff jeffy answered 2 years ago

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