Find the interest rate needed for an investment of 24000 dollars to grow to an amount of 34300 dollars in 8 years if the interest is compounded monthly.

Question

cwrw238 · Answer

sorry - i got called away

formula is  34,300 = 24,000( 1 +  r / 12)^(8*12)
you have to solve this for r

cwrw238 · Answer

can u continue?

lin.ivory · Answer

thats ok! thanks!
I put 34300/24000 = ($$(1+ \frac{ r }{ 12 })^(96)$$

lin.ivory · Answer

to the power of 96

lin.ivory · Answer

but i dont know how to log both side? or get rid of the exponent 96

cwrw238 · Answer

yes thats right

cwrw238 · Answer

ok  take logs of both sides

ln (34300/24000) = 96 * ln (1 + r/12)

cwrw238 · Answer

r will be in decimal form

lin.ivory · Answer

sorry but is it possible for you to explain ln? i dont quite understand the concept

cwrw238 · Answer

wait we can do this another way not involving  logs

34300/24000  = (1 + r/12)^ 96
(1 + r/12)  =   (34300/24000)^(1/96)
ur calculator should be able to do this

lin.ivory · Answer

but the answer came out wrong?

cwrw238 · Answer

i got 0.047 - or near that id have to do it again
what did you get?

cwrw238 · Answer

0.0447  or 4.47 %

lin.ivory · Answer

OOOooops!! i typed in the wrong decimal lol!

cwrw238 · Answer

haha - we all do that sometimes

lin.ivory · Answer

thank you very much! :)

cwrw238 · Answer

yw