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

Briefly describe he function of the cell parts (organelles)
Within a period, an increase in atomic number is usually accompanied by A. a decrease in atomic radius and an increase in electronegativity. B. an increase in a
quadratic formula 2x²+9x-4=0
Solve for x: x-1/4=1/2 help please
What effect did nationalist unrest have on the ottoman empire?
The product of 16 and 4 less than a number is 208. Find the number
What are the solutions to the equation x2 + 6 = 87?   A. –9 and 9
what to numbers multiply to -100 but add up to -21?
Why did the USA and the USSR fall out after World War 2?
which is the least? 3.95, 3 5/6, 3 4/5