Scuz Bootes has been doing custom choppers, piercings, and tattoos for over thirty years. His home and place of business is a ga
1 answer:
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Answer:
Compounding interest rate, r = 10.41%
Explanation:
As the investment will be doubled after 7 years from now, the future value of the current investment will be = $10,000 × 2 = $20,000
Therefore,
Number of periods (years), n = 7
Future value, FV = $20,000
Principal = Present Value, PV = $10,000
we have to determine the compounding interest rate, r.
We know,
r =
Putting the values into the formula, we can get,
r =
or, r =
With the help of calculator, we can find the value of = 1.1041
or, r = (1.1041 - 1)
or, r = 0.1041
Therefore, interest rate = 10.41%
Answer:
The interest rate is "21.999%".
Explanation:
The given values are:
Amount lent,
= 10,000
Amount repaid,
= 27,027
Years (n),
= 5
As we know,
⇒
On substituting the given values, we get
⇒
⇒
⇒
⇒
⇒
On subtracting "1" from both sides, we get
⇒
⇒
i.e.,
⇒