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

Find the value of m,if the distance between A(2,-1) and B(m,-5) be 4√2 units[tex]d = [/tex]​
Transfers wave in a string is 15 Milli per second if a source produces where of frequency 6 hurts calculate wavelength
describe how water moves from the soil into xylem of root hairs ​
Calculate the standard deviation from the data given below Income (Rs.) 50 60 70 80 90 100 110 No. of persons: 10 20 22 25 13 6 4​
write a diary entry on Rajgir hills of bihar​
If the first term of a geometric progression is 16 and the 5th term is 9. Find the 7th term of the geometric progression
After cooking chicken on the bone, why must it stand for 5 minutes before serving?
Once a truckload of wheat has been​ weighed, title passes to the buyer. A. True B. False
Ski jackets REI pays $330.30 for a 6-person tent and the markup is 45% of cost . Find the markup
Evaluate for c when f=77∘. c=5/9​(f−32) responses: a. 25.0∘ b. 35.0∘ c. 45.0∘ d. 55.0∘