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 one year 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.
 one year 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
 one year 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.

u0860867
 one year 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
 one year 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
 one year 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
 one year ago
Best ResponseYou've already chosen the best response.1Sorry, replace n with 20, my bad :)

u0860867
 one year ago
Best ResponseYou've already chosen the best response.0thanks again @terenzreignz

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