Suppose that you invest $10000 for 5 years.
-If the compound interest rate is doubled, does the amount accumulate also double at the end of 5 years? Defend your answer near an acual illustration.
I think I might start near the compound interest formula: A=P(1+r)^t
Is that right?
I am confused on what to substitute.
Answers: not neccesary ( i think). all you hold to do is plug in the number
P = $10k
t = 5 year (or 60 month, etc...depend on rate)
r = rate
r = 5% annually vs 10% annually
A (5%) = 10k(1+0.05)^5 = 12,762.82
A (10%) = 16,105.10
so amount accumulate (interested earn) is a little more than double.
hope it relieve (i'm not in any bussiness major)
that's right, presently plug some numbers in for the variables
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