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=10496.08 1.1245+150013302.9469 x3=x2 r+a=13302.9469 1.1245+150016459.2968 x4=x3 r+a=16459.2968 1.1245+150020008.6439 x5=x4 r+a=20008.6439 1.1245+150023999.9201



We will be pleased if You send us any improvements to this math problem. Thank you!



avatar




Tips to related online calculators
Our percentage calculator will help you quickly calculate various typical tasks with percentages.

You need to know the following knowledge to solve this word math problem:

Related math problems and questions:

  • Savings
    500eur The depositor regularly wants to invest the same amount of money in the financial institution at the beginning of the year and wants to save 10,000 euros at the end of the tenth year. What amount should he deposit if the annual interest rate for the annua
  • Account operations
    penize_49 My savings of php 90,000 in a bank earns 6% interest in a year. If i will deposit additional php 10,000 at the end of 6 months, how much money will be left if i withdraw php 25,000 after a year?
  • Suppose 3
    penize Suppose that a couple invested Php 50 000 in an account when their child was born, to prepare for the child's college education. If the average interest rate is 4.4% compounded annually, a, Give an exponential model for the situation b, Will the money be
  • Saving 9
    penize_40 An amount of $ 2000 is invested at an interest of 5% per month. If $ 200 is added at the beginning of each successive month but no withdrawals. Give an expression for the value accumulated after n months. After how many months will the amount has accumula
  • Savings
    penize_5 Suppose on your 21st birthday you begin making monthly payments of $500 into an account that pays 8% compounded monthly. If you continue the payments untill your 51st birthday (30 years), How much money will be in your account? How much of it is interest?
  • Loan
    loan Apply for a $ 59000 loan, the loan repayment period is 8 years, the interest rate 7%. How much should I pay for every month (or every year if paid yearly). Example is for practise geometric progression and/or periodic payment for an annuity.
  • You take
    exp_growth You take out Php 20 000 loan at 5% interest rate. If the interest is compounded annually, a. Give an exponential model for the situation b. How much Will you owe after 10 years?
  • How much 2
    bank2_1 How much money would you need to deposit today at 5% annual interest compounded monthly to have $2000 in the account after 9 years?
  • Future value
    penize_2 Suppose you invested $1000 per quarter over a 15 years period. If money earns an anual rate of 6.5% compounded quarterly, how much would be available at the end of the time period? How much is the interest earn?
  • Investment
    penize_49 1000$ is invested at 10% compound interest. What factor is the capital multiplied by each year? How much will be there after n=12 years?
  • Annual interest
    bank2 A loan of 10 000 euro is to be repaid in annual payments over 10 years. Assuming a fixed 10% annual interest rate compounded annually, calculate: (a) the amount of each annual repayment (b) the total interest paid.
  • Two years
    exp_growth2 Roy deposited 50,000.00 into his account paying 4% annual interest compounded semi annually. How much is the interest after 2 years?
  • Retirement annuity
    bankovka How much will it cost to purchase a two-level retirement annuity that will pay $2000 at the end of every month for the first 10 years, and $3000 per month for the next 15 years? Assume that the payment represent a rate of return to the person receiving th
  • Compound interest
    bank_3 Compound interest: Clara deposited CZK 100,000 in the bank with an annual interest rate of 1.5%. Both money and interest remain deposited in the bank. How many CZK will be in the bank after 3 years?
  • Semiannually compound interest
    bank2 If you deposit $5000 into an account paying 8.25% annual interest compounded semiannually, how long until there is $9350 in the account?
  • Balance of account
    usd_6 Theo had a balance of -$4 in his savings account. After making a deposit, he has $25 in his account. What is the overall change to his account?
  • If you 4
    exp_growth If you deposit $2500 in an account paying 11% annual interest compounded quarterly, how long until there is the $4500 in the account?