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 1/10 of 2000000
The context of a piece of writing is the A. environment in which it was written. B. denotative meaning of its language. C. author’s ideas about a specific topic
What is the domain of the function y=ln(x+2)
While pulling a bicycle out of the garage, you must pull it a total of 1.7 m with a force of 27 n. how much work are you doing on the bicycle? a. 25.3 j b. 6.
Soil formation involves both a. decaying and erosion of rocks b. decomposition and crystallization of rocks c. chemical weathering and erosion of rocks d. physi
(PLS HELP?) Quadrilateral WXYZ is a rectangle. The perimeter of triangle XYZ=24, XY+YZ=5x-1, and XZ=13-x. Find the length of WY.
Les filles _________ pendant toute la fête. (danser)
Magnesium has 2 valence electrons, and oxygen has 6 valence electrons. Which type of bonding is likely to occur between a magnesium atom and an oxygen atom?
does "pinto" have an accent mark?
Drip irrigation can reduce the amount of water used on a farm. True False