A community for students.
Here's the question you clicked on:
 0 viewing
u0860867
 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.
u0860867
 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.

This Question is Closed

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%
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.