At how much interest rate an amount of $22500 will grow up to $65800 in 10 years?

Given:-

Present Value (PV) : $22,500

Future Value (PV) : $65,800

no. of years (n) = 10 years

rate of interest (r) = ?

Solution:- For calculating the rate of interest that will give 65,800 in 10 years by investing 22,500 today, we can use Future Value formula-

Future Value = Present Value (1+r)^n

65,800 = 22,500(1+r)^10

65,800/22,500 = (1+r)^10

2.924 = (1+r)^10

¹⁰√2.924 = (1+r)

By calculating the 10th root of 2.924, we get

1.1132 = 1+r

r = 0.1132

r= 0.1132 *100

r= 11.32%

Therefore, by using 11.32% rate of interest, $22500 will grow up to $65800 in 10 years.