If you deposit $800 into a bank account today, what annually compounded interest rate would you...

If you deposit $800 into a bank account today, what annually compounded interest rate would you need to earn in order to have $2,000 in 19 years? Enter your answer as a percentage rounded 2 decimal places. Do not enter the % sign.

Expert Solution

Present value = Future value/(1+i)^n

i = interest rate per period

n= number of periods

=>

800 = 2000/(1+i)^19

=>

i = (2000/800)^(1/19) - 1

= 4.94%

jeff jeffy answered 2 years ago

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