Vargas Gross
04/21/2023 · Middle School
Determine the interest rate \( r \) needed for an investment of \( \$ 5,000 \) to grow to \( \$ 25,000 \) in 5 years if interest is compounded monthly (i.e., 12 times a year). Exact interest rate (without using a calculator), \( r=\square \times \% \) Interest rate, as a percent, rounded to 2 decimal places \( =\square \)
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The exact interest rate is \( r = \frac{\ln(5)}{5} \times \% \) and the interest rate rounded to two decimal places is 32.19%.
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