56.5k views
3 votes
A sum of money invested will double after 6 years. If the interest is compounded quarterly, what is the rate?

User Destan
by
7.7k points

1 Answer

0 votes
We'll say principal = 100 and total = 200
a) exp = log(total / principal) / (n* years)
where "n" is the number of compounding periods per year
exp = log (200 / 100) / (4*6)
exp = log (2) / (24)
exp = 0.30102999566 / 24
exp = 0.0125429165

b) rate = (10^exp -1) * n
rate = (10^0.0125429165 -1) * n
rate = (1.0293022367 -1) * n
rate = .0293022367 * 4
rate = 0.1172089468
rate = 11.72089468 %

See? It's just that simple. LOL














A sum of money invested will double after 6 years. If the interest is compounded quarterly-example-1
User Hmmmbob
by
7.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories