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Asked Dec 10, 2019
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12.) What is the rate on an investment that doubles $3171 in 14 years? Assume interest is compounded quarterly.

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Expert Answer

Step 1

Let the rate of interest be r/ year.

Since the interest compounded quarterly, the rate of interest becomes r/4.

The amount invested is P = $3171.

Double times of the initial amount is A = 2 × $3171 = $ 6342.

Year of investment ...

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r/ 4 A = P 1+ 100

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