SOLUTION: what rate of interest would one need in order to double one's investment in 8 years if interest is compounded daily.
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Question 376022: what rate of interest would one need in order to double one's investment in 8 years if interest is compounded daily.
Found 2 solutions by solver91311, mananth:
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
For daily compounding:
^{365t})
You want to find 
when 
and 
So
^{365\,\cdot\,8}\ =\ 2)
^{365\,\cdot\,8}\ =\ \ln(2))
\ln\left(1\ +\ \frac{r}{365}\right)\ =\ \ln(2))
\ =\ \frac{\ln(2)}{365\,\cdot\,8})
}{365\,\cdot\,8}}\ =\ 1\ +\ \frac{r}{365})
}{365\,\cdot\,8}}\ -\ 1\ =\ \frac{r}{365})
}{365\,\cdot\,8}}\ -\ 1\right))
A little whacking on the calculator should get you to about 8.67%
John
My calculator said it, I believe it, that settles it
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Assume Principal = 100=P
Amount = 200=A
time = 8 years =n
continuously -q=compounding term
..
Compound Interest formula
i = q([A/P]1/nq - 1).
i= 365*((200/100)^(1/(8*365))-1)
..
i=0.0866 = 8.66 %
...
m.ananth@hotmail.ca
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