A grandfather gave his grandchild $100 for his 10th birthday. The child’s parents talked him into putting this gift into a bank account so that when he had grandchildren of his own he could give them similar gifts. The child lets this account grow for 50 years, and it has $100,000. What was the interest rate of the account?

A grandfather gave his grandchild $100 for his 10th birthday. The child’s parents talked him into putting this gift into a bank account so that when he had grandchildren of his own he could give them similar gifts. The child lets this account grow for 50 years, and it has $100,000. What was the interest rate of the account?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section6.1: Why Save?

Problem 6R

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