Find the rate of interest required to achieve the conditions set forth.
-If Jay bought a lot for $8,000 and sold it 15 years later for $24,000, what was her percentage rate of return on this investment if it was compounded annually?
A) 8.7104%
B) 9.6825%
C) 7.5990%
D) 3.7995%

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, A = $24,000, P = $8,000, n = 1 (compounded annually), and t = 15 years. Solving for r gives approximately 7.5990%.

Find the Rate of Interest Required to Achieve the Conditions