Question

assume the cost of a college education would be to 325,000 when your child enters college 17 years. You presently have $51,000 to

Answer 1

Answer:

11.51 %

Explanation:

The computation of the interest rate is shown below:

As we know that

Amount = P (1 + rate)^number of years  

$325,000 = $51,000 (1+r)^17

(1+r)^17 = $325,000 ÷ $51,000

(1+r)^17 = 6.372549

(1+r) = (6.372549)^1 ÷ 17

1 + r = 1.115097

r = 1.115097 - 1

r = 0.115097

= 11.51 %