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

What is the political party of the President now?
Name one problem that led to the Civil War.
what does monarchy mean and how can you put it into a sentence
Name one U.S. territory
Two forms of solid carbon, diamond and graphite, differ in their physical properties due to the differences in their (1) atomic numbers (2) crystal structures (
If the President can no longer serve, who becomes President?
What is the “rule of law”?
A large passenger aircraft accelerates down the runway for a distance of 3300 m before leaving the ground. It then climbs at a steady 6.3 degree angle.After the
In what month do we vote for President?
What are two Cabinet-level positions?