Compound value for solving r At what annual rate would the f

(Compound value for solving r) At what annual rate would the following be invested ?

a. $510 to grow to $1,229.02 in 13 years

b. $300 to grow to $548.41 in 7 years

c.$49 to grow to $422.03 in 19 years

d.$200 to grow to $253.06 in 6 years

A.) At what annual rate would 510 have to be invested to grow to 1,229.02 in 13 years ? ()% round to nearest whole perecent

Repeat same process for B,C and D.

Solution

a. Future Value = Present Value *(1+i)^n Where, 1229.02 = 510*(1+i)^13 i Interest rate      2.4098 = (1+i)^13 n Life in years 2.4098^(1/13) = 1+i 1.069998 = 1+i i = 0.069998 Thus, Annual rate 7.00% b. Future Value = Present Value *(1+i)^n Where, 548.41 = 300*(1+i)^7 i Interest rate      1.8280 = (1+i)^7 n Life in years 1.8280^(1/7) = 1+i 1.089997 = 1+i i = 0.089997 Thus, Annual rate 9.00% c. Future Value = Present Value *(1+i)^n Where, 422.03 = 49*(1+i)^19 i Interest rate      8.6129 = (1+i)^19 n Life in years 8.6129^(1/19) = 1+i 1.120001 = 1+i i = 0.120001 Thus, Annual rate 12.00% d. Future Value = Present Value *(1+i)^n Where, 253.06 = 200*(1+i)^6 i Interest rate      1.2653 = (1+i)^6 n Life in years 1.2653^(1/6) = 1+i 1.039997 = 1+i i = 0.039997 Thus, Annual rate 4.00%