SOLUTION: 1. Please help again with these problems:at what compound interest rate per annum must money be invested if the principal must be tripled in 10 years and interest is calculated qua
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Question 1169802: 1. Please help again with these problems:at what compound interest rate per annum must money be invested if the principal must be tripled in 10 years and interest is calculated quarterly.
2. Use simultaneously equation to solve 5x-3y÷2=14, 2 dived on 3y and 5x÷6+5y=755, 6 dived on 5x Found 2 solutions by Boreal, ikleyn:Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! P=Po(1+r/4)^40
P=3Po
3=(1+r/4)^40
ln 3=40 ln (1+r/4)
0.02747=ln(1+r/4)
raise to e power
1.0278=(1+(r/4))
.0278=r/4
r=11.12%
can check with rule of 110 for tripling of money (same approach as rule of 70 or 72 for doubling), which would say just over 10 years so answer reasonable.
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5x-1.5y=14
(5x/6)+5y=755
multiply the top by 10 and bottom by 3
50x-15y=140
2.5x+15y=2265
52.5x=2405
x=45.81 and substitute into the first to get y=143.37
These do check but I wonder whether my interpretation of the explanation was the same as the actual problem.
You can put this solution on YOUR website! .
Please help again with these problems: at what compound interest rate per annum must money be invested
if the principal must be tripled in 10 years and interest is calculated quarterly.
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If A is the amount and "r" is the annual compound interest rate, then the future value of the compounded amount is
FV= = .
We want to triple the amount
3A = .
Cancel the factor A in both sides to get
3 = .
Take log base 10 of both sides
log(3) =
Get
= = 0.011928
Hence
= = 1.027846.
It implies
r/4 = 0.027846, r = 4*0.027846 = 0.111384.
ANSWER. The nominal annual compound interest rate should be 11.14%.
Solved.
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What you see in this post, is the STANDARD METHOD solving such problems, shown in all details.
