saral9972 saral9972
  • 25-02-2018
  • Mathematics
contestada

At what rate must $287.50 be compounded annually for it to grow to $572.86 in 8 years?

Respuesta :

mathmate
mathmate mathmate
  • 01-03-2018
Using the compound interest formula,
572.86=287,50(1+i)^8
(1+i)^8=572.86/287.50=1.992557
1+i=(1.992557)^(1/8)=1.0899996
=> 
i=1.0899996-1=9%

Note: This problem can also be solved in the head using the rule of 72.
Since after 8 years, the amount is roughly doubled, we can say that the interest rate is approximately 72/8=9%
Answer Link

Otras preguntas

help for how many ways can 3 identical pen sets and 5 identical watches be given to 8 graduates if each received one item?
The period in Japan's history in the late 19th century when imperial rule was restored was known as the __________
1/11 -0.9 0.09 1/10 in least to greatest
oliver cromwell led the military forces of parliament against the kings troops in a period known as
Henry VIII broke with the Catholic Church in order to obtain a divorce from his first wife Catherine. T or F
why is an egg cell smooth and spherical?
What new system of national government did the delegates agree upon at the constitutional convention of 1787?
Jean-Jacques Rousseau’s main argument was that a government should __________.
What effect does the jungle have on the boys? In Lord Of The Flies.
What regions were explored by Coronado, de Soto, and Ponce de LeÓn?