Given what we know, we can confirm that the interest rate necessary to reach $5500 in 7 years with a starting investment of $4000 on a yearly compounded interest, would be 4.7%.
Since the question did not specify any extra data to be taken into account, such as:
and so on, we can assume that all of these values are null. Therefore, if we take $4000 and add 4.7%, and repeat that every time using our new totals, after 7 repetitions we are left with close to $5500, which is our goal.
Therefore, we can confirm that the interest rate necessary to reach $5500 in 7 years with a starting investment of $4000 on a yearly compounded interest, would be 4.7%.
To learn more about interest rates visit:
https://brainly.com/question/4626564?referrer=searchResults
