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

Ayer yo __ enferma todo el dia​
Lai drove for 2 hours at a constant speed of 55 mph. How many total miles did she travel?
lola has $75. She buys a pair of shoes on sale for one-half off and a pair of socks for $6. She has $32 left. Which equation can be used to find x, the regular
Co to jest historia
I need help ASAP You are choosing between two plans at a discount warehouse. Plan A offers an annual membership fee of $80 and you pay 80% of the manufacturer's
What do pulmonary vein and the inferior vena cava have in common
Calculate the bulk density of a 100 cm3 soil sample that has a 15 percent gravimetric (or mass-based) water content and weighs 130 g.
The three NIMS guiding principles are:
12. In order to make good decisions regarding your health, you must be O well-read. O media literate. O health literate. O computer literate.
How many trees does it take to make a British warship in 1776