jack is an actuary working for a corporate pension fund. He needs to have $14.6 million grow to $22 million in six years. What interest rate compounded annually does he need for this investment?

Question

amistre64 · Answer

just need to solve the formula ...

anonymous · Answer

don't know what to do now

amistre64 · Answer

what is our compound interest formula ...

oh good, dint even need to ask

amistre64 · Answer

A = P(1+r)^t

A/P = (1+r)^t

log(A/P) = t log(1+r)

log(A/P)
------- = t
log(1+r)

amistre64 · Answer

pfft, looking to solve for r, not t

amistre64 · Answer

root it

amistre64 · Answer

A/P = (1+r)^t

(A/P)^(1/t) = 1+r

(A/P)^(1/t) - 1= r

anonymous · Answer

got it

amistre64 · Answer

halfway thru i forgot what we were solving for :)