A sum of money invested will double after 6 years. If the interest is compounded quarterly, what is the rate?
1 answer:
We'll say principal = 100 and total = 200
a) exp = log(total / principal) / (n* years)
where "n" is the number of compounding periods per year
exp = log (200 / 100) / (4*6)
exp = log (2) / (24)
exp = 0.30102999566 / 24
exp = <span> <span> <span> 0.0125429165 </span> </span> </span>
b) rate = (10^exp -1) * n
rate = (10^<span>0.0125429165 -1) * n
</span>rate = <span> <span> <span> (1.0293022367 </span> </span> </span> -1) * n
rate = <span>.0293022367 * 4
</span>rate = <span> <span> <span> 0.1172089468 </span> </span> </span>
rate = 11.<span>72089468 %
</span>See? It's just that simple. LOL
<span> <span> <span> </span></span></span>
a) exp = log(total / principal) / (n* years)
where "n" is the number of compounding periods per year
exp = log (200 / 100) / (4*6)
exp = log (2) / (24)
exp = 0.30102999566 / 24
exp = <span> <span> <span> 0.0125429165 </span> </span> </span>
b) rate = (10^exp -1) * n
rate = (10^<span>0.0125429165 -1) * n
</span>rate = <span> <span> <span> (1.0293022367 </span> </span> </span> -1) * n
rate = <span>.0293022367 * 4
</span>rate = <span> <span> <span> 0.1172089468 </span> </span> </span>
rate = 11.<span>72089468 %
</span>See? It's just that simple. LOL
<span> <span> <span> </span></span></span>
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