Question 1037685: Find the rate at which a sum of money will double itself in 3 years , if the interest is compounded annually .
Answer by jorel555(1290)   (Show Source):
You can put this solution on YOUR website! The formula for compound interest is (1+r)^n, where r is the rate of interest, and n is the amount of compounding periods. In order to double our money,(1+r)^3 must equal 2. So:
(1+r)^3=2
1+r=cube root of 2=1.25992104989
r=.25992104989, or 25.992104989% interest to double your money in 3 years!!!!!!!!!!
|
|
|
