Question

The future value of $6000 invested for 5 years at rate r, compounded annually, is given by S=6000(1+r)^5. Find the rate r, as a percent that gives a future value of $8415.31. Round to the nearest whole percent.

Answer 1

8415.31=6000(1+r)^5

1.4025517 = (1+r)^5
take the 5th root on your calculator
1.0699999 = 1+r
r = .069999 or 7%