Question

John has 5,000 to invest in a saving account that has interest compounded annually. If he wants his money to double in 8 years what percent must the interest rate be on the account ?

Answer 1

hi

5 000 * X ^(8) =  10 000

             x^(8) =  10 000 / 5000

             x ^(8)=  2

            x =  2^(1/8)

            x≈ 1.09

intrest rate must be  9%

Answer 2

Answer: The interest rate is 6.25%

Step-by-step explanation:

You have to use the formula interest x 100 / Principal  x Time which is 5,000 x 100/8 x 10,000 which will give 6.25%.