Posted by **Kim** on Saturday, October 10, 2009 at 12:36pm.

If jim wants to accumulatw $13,217.74 in 2 years. currently has $10,477.03 to invest. what interest rate must he earn on the investment if he deposits $10,477.03 today to have $13,217.74 exactly 2 years from today?

- finance -
**jim**, Saturday, October 10, 2009 at 1:01pm
I like this question :-)

Let's assume interest is compounded annually.

After one year, the value will be 10,477.03 * x, where x is 1 + (interest rate implicitly divided by 100).

After two years, it will be

10,477.03 * x * x, because we increase it by the same percent again. And we want that to be 13,217.74

So

10477.03 * x * x = 13217.74

x^2 = 13217.74/10477.03

and your calculator will take it from there.

## Answer This Question

## Related Questions

- Finance - You can deposit 10,000 into an account paying 9% annual interest ...
- Math - Jim Hunter decided to retire to Florida in 10 years. What amount should ...
- Math - Jim Hunter decided to retire to Florida in 10 years. What amount should...
- math - Jim Hunter decided to retire to Florida in 10 years. What amount should ...
- Finance - Your friend claims that he invested $5,000 seven years ago and that ...
- Finance - 24.) For the case shown in the following table, the future value of ...
- Managerial Finance - 24.) For the case shown in the following table, the future...
- Maths B - Kate is thinking about investing $45000 for 5 years. She deposits her ...
- Finance - You are now 30 years old. You plan to retire in 30 years, and expect ...
- finance - Q.1.Differentiate future value from present value and explain how ...

More Related Questions