Steve decides to invest his $12000 in the sharemarket. He think that he has some talent in sharemarket investing and is confident that he can earn dividends equivalent to an interest rate of 20% of...

Extracted text: Steve decides to invest his $12000 in the sharemarket. He think that he has some talent in sharemarket investing and is confident that he can earn dividends equivalent to an interest rate of 20% of his money each year. Steve's dividends are added to he amount he has invested at the end of each year. The value of the investment after t years can be modelled by the equation: A = 12000 x (1.2)^t, where the A is the value of the investment. (a) How long would it take for the value of the investment to be $20000? (b) After investing for 5 full years, he discovers that he has doubled his original starting off capital of $12000. Calculate his true interest rate equivalent that he has managed to adhere to.