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Catherine decides to think about retirement and invests at the age of 21. She invests $25,000 and hopes the investment will be worth $500,000 by the time she turns 65. If the interest compounds continuously, approximately what rate of growth will she need to achieve his goal? Round to the nearest tenth of a percent.

Respuesta :

Answer:i belive the answer should be 8800 dollars a year

Step-by-step explanation:

500000/25000

= ans  X  440

Hence r=1.11

What is compound interest?

When interest is calculated by taking compound interest formula  which is [tex]A = P(1 + r/n)^{nt}[/tex]

where p is principal ,r is rate of interest , t is time , n of time compounded

How to calculate?

[tex]A = P(1 + r/n)^{nt}[/tex]

given P=25000, A=500000,t=4 years n=1

[tex]500000 = 25000(1 + r)^{4}[/tex]

2.11=1+r

r=1.11

Learn more about compound interest

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