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

Am I able to use Acrylic paint for Inkblot projects?
What is the LCM of 2x, 3y, and 4z? 12xyz 24xyz 8xyz 4xyz
-5x=-9x=11x=12x=8-5x+6(4x+15)=242
I need help on counting in French
81 x 1/9 = How do you solve this^^^^
How do you. Get the answers for 72 ounces in 6 steaks =
CDFGJKOP what letter would complet this sequence pattern?
PLEASE HELP ASAP!!! CORRECT ANSWER ONLY PLEASE!! I CANNOT RETAKE THIS!!! Thomas Paine published Common Sense in 1776 in order to present his arguments for Indep
What’s the probability that you will fail a 10 question test if you Christmas tree it?
Ramona is a saleswoman whose base pay plus commissions amounted to $52561 last year. If her base pay was $23690 and she made $77,300 in sales last year, what is