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mr Goodwill [35]
3 years ago
15

Jake Winters plans to invest $7,400 find the interest rate required for the fun to grow to $7,844 and 8 months

Mathematics
1 answer:
Irina18 [472]3 years ago
3 0
<span>log(1 + rate) = {log(total) -log(Principal)} ÷ Years
total = 7.844   principal = 7,400  Years = .6666666

</span><span>log(1 + rate) = {log(7,844) -log(7,400)} / .6666666
</span><span>log(1 + rate) = {3.894537585 -3.8692317197} / .6666666
</span><span><span><span>log(1 + rate) = 0.0253058653 </span> </span> </span> / .6666666
log(1 + rate) = <span> <span> <span> 0.0379588017

Now we  </span></span></span>raise 10 to the power of <span> <span> <span> 0.0379588017
10^</span></span></span>0.0379588017 = <span> <span> <span> 1.0913368046 </span> </span> </span>
which is 1 + the rate
rate = <span>.0913368046 which equals
</span><span>9.13368046 %

</span>Source:
http://www.1728.org/compint2.htm



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