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

books written by a famous historian who is an expert on the american revolution, published in 1999
voolume for r=6in h=10in cylinder
An electron starting from rest, is accelerated by a uniform field of magnitude 175 N/C. Through what distance, in meters, has the electron traveled when its kin
Simplify the expression 5(2a + 3b) - 4(3a - 5b).
thomas paines common sense convinced the colonists to
How does the text feature help the reader better understand David Livingstone's story as it is told in into the unknown by Stewart Ross?
What are four benefits of giving one leader total control?
Superman needs to save Lois from the clutches of Lex Luthor. After flying for 11 seconds, he is 1638 meters from her. Then at 19 seconds he is 1302 meters from
Two marathon runners leave the starting gate, one at 16 mph and the other at 12 mph. If they maintain the pace, how long will it take for them to be 1/3 of a mi
The genotype of an organism and the interaction of the genotype with the environment determine the organism's ________ or observable characteristics