Question

Ron and amie opened an educational savings account for their daughter when she was born making a $5,000 initial investment. They were unable to ever add anything else to the account. What was the rate of return if they had $10,000 in the account after 12 years

Answer 1

Interest rate= 0.083%

Step-by-step explanation:

Principal= $5000 Amount= $10000 Time period= 12 years

A=Amount, P= Principal, I= Simple Interest r= Rate of interest t= Time period

$A= P+ I\\10000= 5000+ I\\I=10000-5000=5000\\I=Prt\\5000=5000*r*12\\r=5000/5000*12\\r=5000/60000\\r=0.083$