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

Lucas read 30% of his book containing 480 pages. What page is he going to read next?
Jim is putting carpet in his basement. The length of his basement is 12 yards. How many feet is the length of his basement?
A. 70 degreesB. 140 degreesC. 250 degreesD. 110 degrees​
PLEASE HELP!!!!!! I CANT FIGURE IT OUT
Recommendations for anime and video games(also if you need points)or write any data of any subjecte it her spanish or english(^·^) ┊┊┊┊╭╯╭╯┊┊┊ ┊╱▔╭╯╭╯▔╲┊┊ ▕╲▂▂▂
I need help please help
Radioactive materials decay by a first-order process. The rate constant for the decay of an isotope whose half-life is 7.69 years is​
Pls help me somebody plzzz
PLZZ HELP MEE List the four obligations the nobles owed to their king (or lord)
Does anyone know how to solve? 3/n*5/6