solve for r to find the required interest rate.
An investment advisor is planning the retirement of a customer. The customer has $10,000 dollars to invest and needs the investment to increase to $30,000 within 20 years...so 20 years or less.
Now I need to figure out 2 investment plans to make the above numbers work themselves out. I am so incredibly frustrated. I thought of the compound interest formula, but the problem does not tell me how many times a year the investment can or should be compounded.
Can someone please shed some light? I really need help!
Thanks is advance!
Hi, I have noticed that this problem was already posted one time here, however even after reading I am still not clear on the investment plan part.
The problem states: create three investment plans for customer who has $10,000 dollars to invest and needs the investment to increase to $30,000 dollars within 20 years.
I have created a plan using Exponential Growth formula for a long term CD investment, and a Compound Interest Formula for a savings account. Now I am not sure what to use for the third plan . Anyone? I was thinking about investing in stocks with dividents for 20 years, however not sure what formulas to apply and how. Please Help!!
How did you use the Exponential Growth formula?
I used continuous and I also found a plan on the Fidelity website that met the criteria for this plan. I need to use something else besides continuous growth, but I am unsure how to solve this using exponential growth.