What annual rate of interest compounded annually should you seek if you want to double your investment in 5 years?

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- Oct 26th 2008, 06:18 AMdc52789Annual Rate
What annual rate of interest compounded annually should you seek if you want to double your investment in 5 years?

- Oct 26th 2008, 11:39 AMJhevon
use the compound interest formula:

where is the amount after time , is the principal, is the rate of interest, and is the number of times in is compounded per year

here, and you need to find . but this is what you want to happen. after 5 years, you want to become . thus you want

now solve for - Oct 26th 2008, 11:44 AMdc52789
- Oct 26th 2008, 11:46 AMJhevon
- Oct 26th 2008, 11:54 AMdc52789
- Oct 26th 2008, 12:00 PMJhevon
- Oct 26th 2008, 12:17 PMdc52789
- Oct 26th 2008, 12:20 PMJhevon