SOLUTION: A sum of money that was invested at a fixed rate of interest doubled in value in 15 years. The interest was compounded yearly. Find the rate of interest to the nearest tenth of a

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: A sum of money that was invested at a fixed rate of interest doubled in value in 15 years. The interest was compounded yearly. Find the rate of interest to the nearest tenth of a      Log On

 

Hi,

 In General 

  2 = (1+r)^15

log 2 /15 = log(1+r)

   .02 = log(1+r)

  10^(.02) = 1+r

   10^(.02) - 1 = .047  0r 4.7% (to the nearest tenth)