Question 1195415

Juan wants to invest $2600 in a savings account. Determine the interest rate (simple interest) required for Juan 's investment to double in value in 14 years. Round your answer to the nearest tenth of a percent.
<pre>Use the formula for Future Value of an amount that earns simple interest, which is: {{{matrix(2,3, A, "=", P(1 + TR), A/P, "=", 1 + TR)}}}
We then have: 2 = 1 + 14R ---- Substituting 2 for {{{A/P}}}, since the invested amount will double, and 14 for T (time, in years).
Annual interest rate, or {{{highlight_green(matrix(1,8, R, "=", 1/14, "=", ".071428571,", or, highlight("7.1%"), "(approximately)"))}}}</pre>