121 14356Kyoko has $10000 that she wants to invest. Her bank has several investment accountsto choose from, all compounding daily. Her goal is to have $15000 by the time shefinishes graduate school in 6 years. To the nearest hundredth of a percent, what shouldher minimum annual interest rate be in order to reach her goal?

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Asked Oct 26, 2019
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step by step please, i believe this is the compound interest formula

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Kyoko has $10000 that she wants to invest. Her bank has several investment accounts
to choose from, all compounding daily. Her goal is to have $15000 by the time she
finishes graduate school in 6 years. To the nearest hundredth of a percent, what should
her minimum annual interest rate be in order to reach her goal?
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1 2 1 1 4 3 5 6 Kyoko has $10000 that she wants to invest. Her bank has several investment accounts to choose from, all compounding daily. Her goal is to have $15000 by the time she finishes graduate school in 6 years. To the nearest hundredth of a percent, what should her minimum annual interest rate be in order to reach her goal?

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Expert Answer

Step 1

Given,

The initial deposit (P) = $10000

The account worth (A) = $15000

The interest is compounded daily n = 365 days

Time (t) = 6 years

Step 2

Formula used:

Compound interest formula for the interest rate (r):

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Step 3

Therefore...

15000 3656
-1
r 365
10000
3 2190
r 365
0.0004 56
-1
r 365 (1.5)
r 3651.0001849-1]
r 365[0.0001849]
r 0.0675
r0.0675 x100
r 6.75%
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15000 3656 -1 r 365 10000 3 2190 r 365 0.0004 56 -1 r 365 (1.5) r 3651.0001849-1] r 365[0.0001849] r 0.0675 r0.0675 x100 r 6.75%

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