IDNLearn.com connects you with a community of knowledgeable individuals ready to help. Ask your questions and receive comprehensive and trustworthy answers from our experienced community of professionals.
Sagot :
Use the following formula for the final amount after t years:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]where,
P: principal investment
A = 2P (because you are interested in doubling the investment)
r: interest rate in decimal form = ?
t: time = 29
n: times at year for the compond interest = 1
Replace the previous values of the parameters into the formula for A and solve for r, as follow:
[tex]\begin{gathered} 2P=P(1+\frac{r}{1})^{1\cdot29} \\ 2=(1+r)^{29} \\ \sqrt[29]{2}=1+r \\ r=\sqrt[29]{2}-1 \\ r\approx0.024 \end{gathered}[/tex]Then, r is approximately 0.024, which corresponds to an interest rate of approximately 2.4%
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Discover insightful answers at IDNLearn.com. We appreciate your visit and look forward to assisting you again.
