(i) What rate of interest compounded annually is needed to make an investment of $6,500 accumulate to an amount of $7166.25 at the end of two years? (ii) How long will it take for the initial amount to double, compounded annually at the rate in (î) above?

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
Problem 29PS: What rate of interest to the nearest hundredth of percent is needed so that an investment of 2500...
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(1) What rate of interest compounded annually is needed to make an investment of $6,500
accumulate to an amount of $7166.25 at the end of two years?
(ii) How long will it take for the initial amount to double, compounded annually at the rate in (i)
above?
Transcribed Image Text:(1) What rate of interest compounded annually is needed to make an investment of $6,500 accumulate to an amount of $7166.25 at the end of two years? (ii) How long will it take for the initial amount to double, compounded annually at the rate in (i) above?
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