Carmen Latoya decides to invest 18919 today because he would like to buil a guitar factory...

Carmen Latoya decides to invest 18919 today because he would like to buil a guitar factory for 70,000 in 17 years. Interest rate is compounded annually. What annual interest must he receive to reach the required amount?

Expert Solution

Answer- If the interest rate is 8% the amount of 18,919 will be 70,000 in 17 years.


Year	Principal	Interest	Amount
1	18,919	1,514	20,433
2	20,433	1,635	22,067
3	22,067	1,765	23,832
4	23,832	1,907	25,739
5	25,739	2,059	27,798
6	27,798	2,224	30,022
7	30,022	2,402	32,424
8	32,424	2,594	35,018
9	35,018	2,801	37,819
10	37,819	3,026	40,845
11	40,845	3,268	44,112
12	44,112	3,529	47,641
13	47,641	3,811	51,453
14	51,453	4,116	55,569
15	55,569	4,446	60,014
16	60,014	4,801	64,815
17	64,815	5,185	70,001

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