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.

HELP ME!

Thanks.

**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

ex:

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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