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

a street that is 116 M long is covered in snow. City workers are using a snow plow to clear the street. A tire on the snow plow house to turn 29 x and traveling
Which word best completes this sentence? _______ ne doit fumer dans un lieu public. A) Rien B) Ni C) Personne D) Quelqu’un
What rhyme schemes are used in the poems “Douglass” and “Richard bone” respectively?
An upright stone that has an incised relief on its surface, such as the maya sculpture (1.2.7), is known as ________.
In the diagram below, BC is an altitude of ABD. To the nearest whole unit, what is the length of CD?
Ch 30 listening quiz mozart: eine kleine nachtmusik, i and iii this movement is set in _____ form.
What is the yo form of the verb desayunar in the present perfect tense?
what is the value of x
What are some of the fields of science to which evolutionary biology contributes?
sin(x)^4+ cos(x)^4=1/2