tubacrossed
tubacrossed tubacrossed
  • 01-06-2016
  • Mathematics
contestada

At what interest rate (to the nearest hundredth of a percent) compounded annually will money in savings double in five years?

Respuesta :

Hagrid
Hagrid Hagrid
  • 14-06-2016
For a single payment with compound interest, the equation to use is F=P(1+i)^n where F is the value after n periods, P is the present value, and i is the interest rate.

If we want the final value F to double in 5 years, F is then equal to P then n=5. The equation is now:

2P=P(1+i)^5
2=(1+i)^5
i=14.87% per year
Answer Link

Otras preguntas

Prove that: F = Gm₁m₂ /d^2​
what was a result of the fact that people convicted of crimes could be legally forced to work
How did World War I have an impact on American consumers? A. Technological advancements made during the war helped create new products for people to buy. OB. Am
Which of these is a correct expansion of (4x-2)(2x² + 3)? OA. 4x 2x2 + (-2) 2x²+2x².3+(-2) 3 OB. 4x 2x² + 4x 3+2·2x²+2.3 OC. 4x 2x² + 4x 3+ (-2) 2x² + (-2) 3 HE
If you had to formulate some goals for cash buil,what would they be
Which of the following is an example of a GAAP standard? Ensuring financial statements are accurate and complete Ensuring products meet all quality standards
Legacy defined in simple words
Translate Triangle A by vector (3, -1) to give triangle B. Then, rotate your triangle B 180° around the origin to give triangle C. Describe fully the SINGLE tra
Find the area of the triangle below. Be sure to include the correct unit in your answer.
e^In(8) use the properties of natural logarithms to simplify the expression