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's the other term for: lacking respect; scornful
A solution of hydrogen peroxide, H2O2, is titrated with potassium permanganate, KMnO4, according to the following equation: 5H2O2 + 2KMnO4 + 3H2SO4 = 5O2 + 2MnS
Which expression is equivalent to 27/125
Solve the quadratic by factoring 2X²-2X-12=0
What's the other term for: one who overindulges in food and drink
round to the nearest hundredth 5.6192
Molecular scientists can read the DNA code and compare the DNA of different organisms. This concept is used in molecular clocks to determine which of the follow
what is glossities and deficiency
What's the other term for: explosive or changing very quickly
How do we use the Pythagoras theorem in "everyday life".