Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

A financial institution offers a "double-your-money" savings account in which you will have $2 in 11 years for every dollar you invest today. What annual interest rate does this account offer? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.G., enter 12.3 percent as 0.123).

Sagot :

okpalawalter8

Answer:

[tex]r=0.07[/tex]

Step-by-step explanation:

From the question we are told that

An offer of 2$ in 11 years on every dollar

Generally we make use of this formula

[tex]F=P(1+r/100)^t[/tex]

where

[tex]f=Future value[/tex]

[tex]P= present value[/tex]

[tex]r=Rate[/tex]

[tex]t=time[/tex]

Mathematically solving  for the rate

     [tex]2=1(1+r/100)^1^1[/tex]

    [tex](2)^1^/^1^1=(1+r/100)[/tex]

    [tex](1+r/100=1.0650[/tex]

     [tex]r=(1.0650-1) *100[/tex]

     [tex]r=0.07[/tex]

Generally this shows that the account give an annual rate of 0.07

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.