Question

At what annual rate of return compounded monthly would your investment grow from $7500 to $10000 in 20 years

Answer 1

Answer:

Using the attached formula:

exp = log (total/principal) / n * years

exp = log (10,000 / 7,500) / 12 * 20

exp = log (1.3333333333) / 240

exp = 0.1249387366 / 240

exp = 0.000520578069166667

rate = (10^exp -1) * n

rate = (10^0.000520578069166667  -1) * n

rate = 1.00119939400018  -1 * n

rate = .00119939400018 * 12

rate = 0.014392728

OR rate = 1.4392728 % Compounded Monthly

OR rate = 1.448805264762% Compounded Annually

Step-by-step explanation: