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anonymous
 3 years ago
Pls help urgent help needed! What annual interest rate compounded annually is required to add 50% to an investment in exactly 20 years? Write your answer to 2 decimal places.
anonymous
 3 years ago
Pls help urgent help needed! What annual interest rate compounded annually is required to add 50% to an investment in exactly 20 years? Write your answer to 2 decimal places.

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terenzreignz
 3 years ago
Best ResponseYou've already chosen the best response.1Well, let's call that interest rate r... And your initial investment a.... So... \[\huge a(1+r)^{20}=1.5a\] Now solve for r.

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0@terenzreignz so what will the initial investment be and how did u get 1.5

terenzreignz
 3 years ago
Best ResponseYou've already chosen the best response.1a is the initial investment, right? And at the end of 20 years, it has to increase by 50% so... it has to be \[\huge a + \color{blue}{<50\% \ of \ a >}=a+0.5a=1.5a\]

terenzreignz
 3 years ago
Best ResponseYou've already chosen the best response.1You can take the first step and do away with the a, by dividing both sides by a... \[\huge (1+r)^n=1.5\]

terenzreignz
 3 years ago
Best ResponseYou've already chosen the best response.1Sorry, replace n with 20, my bad :)

anonymous
 3 years ago
Best ResponseYou've already chosen the best response.0thanks again @terenzreignz

perl
 3 years ago
Best ResponseYou've already chosen the best response.1which is approximately .02048 = 2.048%
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