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What rate of interest compounded annually is required to double an investment in 21 years?
Wiki User
∙ 14y ago
(2)1/21 = 1.03356 (rounded)
That's an annual interest of 3.356 percent.
Let's try it:
(1.03356)21 = 2.00009 on my calculator, which is pretty close.
Wiki User
∙ 14y ago
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What rate of interest compounded annually is required to double an investment in 24 years?
If you start with an investment of I and the interest rate is r% per annum (compounded), then you want a solution to2I = I(1 + r/100)24or I = (1 + r/100)24That is ln(2) = 24*ln(1 + r/100)so that ln(1 + r/100) = ln(2)/24 = 0.02888or (1 + r/100) = exp(0.02888) = 1.0293and so r/100 = 0.0293 so that r = 2.93%If you start with an investment of I and the interest rate is r% per annum (compounded), then you want a solution to2I = I(1 + r/100)24or I = (1 + r/100)24That is ln(2) = 24*ln(1 + r/100)so that ln(1 + r/100) = ln(2)/24 = 0.02888or (1 + r/100) = exp(0.02888) = 1.0293and so r/100 = 0.0293 so that r = 2.93%If you start with an investment of I and the interest rate is r% per annum (compounded), then you want a solution to2I = I(1 + r/100)24or I = (1 + r/100)24That is ln(2) = 24*ln(1 + r/100)so that ln(1 + r/100) = ln(2)/24 = 0.02888or (1 + r/100) = exp(0.02888) = 1.0293and so r/100 = 0.0293 so that r = 2.93%If you start with an investment of I and the interest rate is r% per annum (compounded), then you want a solution to2I = I(1 + r/100)24or I = (1 + r/100)24That is ln(2) = 24*ln(1 + r/100)so that ln(1 + r/100) = ln(2)/24 = 0.02888or (1 + r/100) = exp(0.02888) = 1.0293and so r/100 = 0.0293 so that r = 2.93%
What is the interest rate needed for an investment of 7000 to grow to an amount of 9500 in 3 years if interest is compound monthly?
The formula to calculate the present amount including compound interest is, A = P(1 + r/n)nt , where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded. 9500 = 7000(1 + r/12)^(12 x 3) = 7000(1 + r/12)^36 Then, (1 + r/12)^36 = 9500 / 7000 = 1.3571429 approx (1 + r/12) = 36√1.3571429 ≅ 1.0085189 r/12 = 0.0085189 r = 12 x 0.0085189 ≅ 0.1022268 Then the required interest rate is 10.223% (3dp)
When all required information is available to solve a problem it can be said it is a?
A well-structured problem has all the required information to solve it.
When all required information is available to solve a problem it can be said that it is an?
A well-structured problem has all the required information to solve it.
Equalizing connections are required when paralleling two?
Equalizing connections are required when parallelingtwo compound generators and paralleling two Series generator .
What rate of interest compounded annually is required to triple an investment in 3 years?
Approx 44.225 % The exact value is 100*[3^(1/3) - 1] %
What interest rate is required for an investment with continuously compounded interest to double in 8 years?
It is approx 8.66%
Suppose Betty takes out a loan for 300 at an annually compounded interest rate of 6 percent to be repaid after 5 years How much will be required to pay off the loan?
390.45
What rate of interest compounded annually is required to triple an investment in 10 years?
(1+x)10 = 310 log(1+x) = log(3)log(1+x) = 0.1 log(3)(1+x) = 10[0.1 log(3)] = 1.116123x = .116123 = 11.61 percent
Determine the per annum interest rate r required for an investment with continuous compound interest to yield an effective rate of 4.25 percent Express your answer as a percent?
We still need to know how often the interest is compounded ... Weekly ? Daily ? Hourly ? What does "continuous" mean ?
What is a good jumbo CD rate to make the investment worthwhile?
A good jumbo CD rate would be over 5% and one must be careful to find out how often the interest will be compounded. Also important is the minimum investment amount that would be required.
What rate of interest compounded annually is required to triple an investment in 30 years?
3.73% would do it almost exactly: Where p is the original investment and i is the rate of interest: 3p = p((1 + i/100) to the power of 30) dividing by p gives ((1 + i/100) to the power 30) = 3 using logarithms (log 3)/30 = 1 + i/100 antilog (0.47712/30) = 1 + i/100 antilog 0.0159 = 1 + i/100 1.037299 = 1 + i/100 0.037299 = i/100 i = 3.7299 Later: I tested this on Excel with capital of 5000 and interest rate of 3.73% and after 30 years investment was worth 15000.35!
What rate of interest compounded annually is required to double an investment in 16 years?
Future Value = (Present Value)*(1 + i)^n {i is interest rate per compounding period, and n is the number of compounding periods} Memorize this.So if you want to double, then (Future Value)/(Present Value) = 2, and n = 16.2 = (1 + i)^16 --> 2^(1/16) = 1 + i --> i = 2^(1/16) - 1 = 0.044274 = 4.4274 %
What annual rate of interest is required to triple an investment in 12 years?
If it is compounded annually, then: F = P*(1 + i)^t {F is final value, P is present value, and i is interest rate, t is time}.So if it triples, F/P = 3, and 12 years: t = 12, so we have 3 = (1 + i)^12, solve for i using logarithms (any base log will do, but I'll use base 10):log(3) = log((1+i)^12) = 12*log(1+i)(log(3))/12 = log(1+i).Now take 10 raised to both sides: 10^((log(3))/12) = 10^log(1+i) = 1 + ii = 10^((log(3))/12) - 1 = 0.095873So a rate of 9.5873 % (compounded annually) will triple the investment in 12 years.
Six thousand dollars is deposited into a fund at an annual rate of 13 percent find the time required for the investment to double if the interest is compounded continuously?
the equation for compound interest is Pe^(rt) the principal you want in the end is twice that of the original 12,000 plugging in and solving you get 12,000=6000e^(.13t) t = 5.33 years
Relationship between required rate of return and coupon rate on the value of a bond?
required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond
Jon deposits 1000 in an account that pays 8 percent interest compounded annually How long will it take to double your money?
1). My money will never double. Let's talk about Jon's money instead. 2). It doesn't matter how much he deposits into the account. The time required for it to double is the same in any case. 3). At 8% interest compounded annually, the money is very very very nearly ... but not quite ... doubled at the end of 9 years. At the end of the 9th year, the original 1,000 has grown to 1,999.0046. If the same rate of growth were operating continuously, then technically, it would take another 2days 8hours 38minutes to hit 2,000. But it's not growing continuously; interest is only being paid once a year. So if Jon insists on waiting for literally double or better, then he has to wait until the end of the 10th year, and he'll collect 2,158.92 .
