Answer:
r ≈ 7.18%
Step-by-step explanation:
a = p(1 + r)^n
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a = 10000 * 2 = 20000
p = 10000
n = 2035 - 2025 = 10
Plug in the knowns
20000 = 10000(1 + r)^(10)
Divide both sides by 10000
2 = (1 + r)^(10)
Take the log of both sides
log2 = 10 * log(1 + r)
Divide bot sides by 10
(log2)/10 = log(1 + r)
use calculator
0.030102999566398 = log(1 + r)
antilog both sides
10^0.030102999566398 = 1 + r
1.0717734625 = 1 + r
Subtract 1 from both sides
0.0717734625 = r
r ≈ 7.18%
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Alternate method
2 = (1 + r)^(10)
Take 10th root of both sides
1.0717734625 = 1 + r
Subtract 1 from both sides
0.0717734625 = r
r = 7.18%
