In 2001, a sum of $3000 was invested at a rate of 6.5% per year for 18 years. a) Write an equation to model this investment and use it to find the value of the investment at the end of the 18 years. b) If there needed to be $15000 at the end of the 18 years, find the approximate interest rate(to nearest tenth) that would be required to accumulate this amount.

In 2001, a sum of $3000 was invested at a rate of 6.5% per year for 18 years. a) Write an equation to model this investment and use it to find the value of the investment at the end of the 18 years. b) If there needed to be $15000 at the end of the 18 years, find the approximate interest rate(to nearest tenth) that would be required to accumulate this amount.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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