In: Finance
Juan Arancho has $12,000 and would like to double his money in 8 years. What rate would he need to earn to reach is goal?
A. 9.0508%
B. 8.8548%
C. 8.7589%
Formula:
Future value= present value(1+r)^n
r= interest rate for the period.
n = number of periods.
Double of 12000 is 24000.
So future value is 24000.
24,000 = 12,000*(1+r)^8
r= 9.05077
Answer: A. 9.0508%