document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=397837>Question 397837</A>: <I><SPAN STYLE=\"word-break: break-all;\"> EE savings bond is sold at half face value, US Treasury guarantees it will double in value by 20 years from the issue date.  What is the minimum APY for such a bond? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #281844 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=281844\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> EE savings bond is sold at half face value, US Treasury guarantees it will double in value by 20 years from the issue date. What is the minimum APY for such a bond?<BR>\n" );
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document.write( "P(t) = P(0) + P(0)rt<BR>\n" );
document.write( "---<BR>\n" );
document.write( "Let P(0) be $1.<BR>\n" );
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document.write( "P(20) = 1 + 20r<BR>\n" );
document.write( "2 = 1 + 20r<BR>\n" );
document.write( "20r = 1<BR>\n" );
document.write( "r = 1/20<BR>\n" );
document.write( "r = 0.05<BR>\n" );
document.write( "---<BR>\n" );
document.write( "rate = 5%<BR>\n" );
document.write( "=========================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.  </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );