Answer:
14.87%
Explanation:
we have to use the future value formula to solve this question:
future value = present value x (1 + rate)ⁿ
you need to save $20,000 in 10 years (this is your future value)
currently you have $5,000 which will be $5,000 x (1 + r)¹⁰
$20,000 = $5,000 x (1 + r)¹⁰
(1 + r)¹⁰ = $20,000 / $5,000
(1 + r)¹⁰ = 4
¹⁰√(1 + r)¹⁰ = ¹⁰√4
1 + r = 1.1487
r = 1.1487 - 1
r = 0.1487 = 14.87%
