Question

if maggie has $5,000 to invest and wants to have $10,000 at the end of 9 years, what interest rate must she earn on her money, assuming annual compounding?

Answer 1

Answer:

The interest rate should be 8% over the span of 9 years

Explanation:

Starting with $5,000, an interest rate of 8% would bring her to exactly $10,000 after 9 years, with a total compound interest of $5,000