Suppose $600 is compounded yearly for 20 years. If no other deposits are made, what rate is needed for the balance to triple in

Question

3 years ago

13

that time? Round your answer to the nearest hundredth of a percent.

1 answer:

denis-greek [22] · Answer 1 · 2022-07-18T15:42:10+03:00

4 0

Answer:

5.65%

Step-by-step explanation:

Principal=$600

Time=20 years

FV=600*3=$1800

n=1

r=?

r= n[(A/P)^1/nt - 1]

=1{(1800/600)^ 1/1*20 - 1}

={(3)^1/20-1}

=3^0.05-1

=1.0565-1

=0.0565

rate=0.0565*100

=5.65% to the nearest hundredth percent