Thread: Intro Calc HW

logs----

if $10000 is invested at an interest rate compounded annually the investment will grow to $P after x years where

P=10 000(1.08)^x

d) how long will it take for the ionvestment to grow $50 000 if the interest is 14% for the first 8 yrs and 10% thereafter?

e) find the annual interest rate necessary for the $10 000 to double in value in 5 yrs. (give ur answer as percentage)

Thankyu

Hello, Fibonacci!

If $10000 is invested at % compounded annually.
the investment will grow to $P after x years where: .

d) How long will it take for the investment to grow $50 000
if the interest is 14% for the first 8 yrs and 10% thereafter?

The $10,000 is invested at 14% for the first 8 years.
. . Its value will be: . dollars.

Then that amount is invested at 10% for years.
. . The final value is: .
. . which is to equal $50,000.

There is our equation . . .

Divide by 10,000: .

Divide by

Take logs: .

Therefore: . years.

It will take: .

e) Find the annual interest rate necessary for the $10 000
to double in value in 5 yrs. (Give your answer as percentage.)

Let = the required interest rate.

Then: .

Divide by 10,000: .

Take the fifth root: .

Therefore: .