Five years

Nakato Nobuki, a Japanese artist, wants to have $24,000.00 in his savings account at the end of five years. Mr. Nobuki deposits $1,500.00 annually into savings and has a balance of $8,000.00 today. What must the interest rate on the savings account be for Nobuki to achieve his goals?

Correct answer:

i =  12.451 %

Step-by-step explanation:

s=24000 a=1500 b=8000  t=a 5+b=1500 5+8000=15500 t<s  r5 b+r4 a+r4 a+r3 a+r2 a+r a=s  r=1.124511.1245  i=100 (r1)=100 (1.12451)=12.451=12.451%   Verifying Solution:  x1=b r+a=8000 1.1245+1500=10496.08 x2=x1 r+a=25262402 r+a=10496.08 1.1245+150013302.9469 x3=x2 r+a=4716265688 r+a=13302.9469 1.1245+150016459.2968 x4=x3 r+a=4757818166 r+a=16459.2968 1.1245+150020008.6439 x5=x4 r+a=4839664175 r+a=20008.6439 1.1245+150023999.9201

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