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Homework answers / question archive / Approximately, what interest rate would you need to earn in order to turn $6700 into $14070 over 6 years? a)12%
Approximately, what interest rate would you need to earn in order to turn $6700 into $14070 over 6 years?
a)12%.
b)14%.
c)15%.
d)16%.
Computation of Interest Rate:
Amount = Principal*(1+Rate)^Time
$14,070 = $6,700*(1+Rate)^6
$14,070/$6,700 = (1+Rate)^6
2.10^(1/6) = 1 + Rate
1.1316 = 1 + Rate
Rate = 1.1316 - 1
Rate = 0.1316 or 13.16%
Interest Rate is 13.16% which is not given in the options.
