# Question #9e9ef

##### 1 Answer

8.997%

#### Explanation:

I am assuming the amount is compounded annually.

Note:- In this explanation, A is amount, P in Principal amount, R is rate of interest, and t is the time

Suppose I have

After first year,

After second year, the rate of interest in on the CURRENT amount, not the original amount, so the previous A becomes the new P

Putting value of

Extending this for

Here, we have to find

P = 13000$

A = 20000$

t = 5 years

Putting this in

Now we have to use a calculator. Calculate the

So it came out to be

So, R comes out to be 8.997%

P.S. Round it off as per your requirements.