Mathematics, 01.04.2020 04:12 alandrabell9234

A bank advertises that it compounds money quarterly and that it will take Double your money in 10 years. what is the interest-rate?

Answers: 3

Show answers

Answers

The interest rate is 6.992%, if a bank advertises that it compounds money quarterly and that it will take Double your money in 10 years.

Step-by-step explanation:

The given is,

Compounds money quarterly

Double your money in 10 years

Step:1

Formula to calculate future investment with compounded quarterly,

$A =P(1+\frac{r}{n} )^{nt}$ ...............................(1)

Where, A - Future amount

P - Initial investment\

r - Rate of interest

n - No. of compounding in a year

t - No. of years

Step:2

Let, P = X

A = 2X ( Double your money )

From given, n - 4 ( for compounding quarterly )

t - 10 years

From equation (1)

$2X =X(1+\frac{r}{4} )^{(4)(10)}$

$\frac{2X}{X} =(1+\frac{r}{4} )^{(4)(10)}$

$2 =(1+\frac{r}{4} )^{40}$

Take root $40^{th}$ root on both side,

$\sqrt[40]{2} = (1+\frac{r}{4} )$

$1.017479692 = (\frac{4+r}{4} )$

(1.017479692)(4) = (r+4)

4.06992=(r+4)

r = 4.06992 -4

r =( 0.06992)(100)

r = 6.992 %

Result:

The interest rate is 6.992%, if a bank advertises that it compounds money quarterly and that it will take Double your money in 10 years.

Answer from: Quest

step-by-step explanation:

Answer from: Quest

- 70

this is the answer for you hope it

Other questions on the subject: Mathematics

Mathematics, 21.06.2019 20:00, rogelionavarro200314

Evaluate the discriminant of each equation. tell how many solutions each equation has and whether the solutions are real or imaginary. x^2 + 4x + 5 = 0

Answers: 2

continue

Mathematics, 21.06.2019 20:40, haltomnatnathan3548

Michelle is planting flowers in her garden. she wants the ratio of daises to carnations to be 3 to 2. michelle wants to plant a total of 35 flowers. how many daises should she plant?

Answers: 3

continue

Mathematics, 21.06.2019 21:30, magicpuppydance

On #16 : explain how factoring a trinomial, ax^2+ bx+ c, when a does not equal 1 different from factoring a trinomial when a = 1.

Answers: 2

continue

Mathematics, 21.06.2019 23:30, hellodarkness14

Which numbers have the same absolute value? choose all that apply. asap will mark at brainliest

Answers: 1

continue

You know the right answer?

A bank advertises that it compounds money quarterly and that it will take Double your money in 10 ye...