document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=507453>Question 507453</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you are planning to invest a sum of money. Estimate the rate that you need so that your investment doubles in 10 years.\r<BR>\n" );
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document.write( "The Rate = ____% </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #340466 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><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=340466\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Suppose you are planning to invest a sum of money. Estimate the rate that you need so that your investment doubles in 10 years. <BR>\n" );
document.write( "The Rate = ____%<BR>\n" );
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document.write( "A=P(1+r)^n, P=initial investment, r=interest rate per period, A=amount after n-years<BR>\n" );
document.write( "Since you want the investment to double, A/P=2, so the formula becomes:<BR>\n" );
document.write( "2=(1+r)^10<BR>\n" );
document.write( "raise both sides to 1/10 power<BR>\n" );
document.write( "1.0718=1+r<BR>\n" );
document.write( "r=1.0718-1=.0718<BR>\n" );
document.write( "Ans:<BR>\n" );
document.write( "The rate that you need so that your investment doubles in 10 years=7.18%  </SPAN>\n" );
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