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butalik [34]
3 years ago
6

Jon has $5,000 to invest in a savings account that has interest compounded annually. If he wants his money to double in eight ye

ars, what percent must the interest rate be on the account?
Mathematics
2 answers:
Sergio [31]3 years ago
4 0

Answer:

Rate=9.05%

Step-by-step explanation:

Let P represent the Principal ,t the time = 8 years and r be the rate of interest.

It is given money doubles in 8 years so A=2P.

The compound interest is given by the formula :

A= P(1+r^{)t}

Substituting the values we have:

2P=P( 1+r^){8}

Dividing both sides by P :

2=(1+r)^{8}

2^{\frac{1}{8} } =1+r

1.0905-1=r

r=0.09050

r=9.05%

timofeeve [1]3 years ago
4 0
Your answer will be ........9
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