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kondaur [170]
3 years ago
14

Suppose you are planning to deposit $3,000 in a bank account. You'd like your deposit to grow to $6,000 in 2 years. If interest

in the account compounds weekly, what annual interest rate do you need?
Business
1 answer:
Pavel [41]3 years ago
4 0

Answer:

The annual interest rate do you need is 34.77%

Explanation:

for:  A is the future value

       P is the present value

       r is the rate of interest

       n is the time period.

Then, the annual interest can be found by:

A = P(1 + r/52)^(52*n)

6000 = 3000*(1 + r/52)^(52*2)

(6000/3000)^(1/104) = (1 + r/52)

(1 + r/52) = 1.006687136

r = (1.006687136 - 1)*52

 = 34.77%

Therefore, The annual interest rate do you need is 34.77%

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