# finance

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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 -

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.

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