Answered: The interest rate required for a $2,050…

The interest rate required for a $2,050 investment to double in 5 years can be found from this equation: 4,100=2,050(1+r2)104,100=2,0501+r210 . Find the necessary rate.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EA: If you invest $12,000 today, how much will you have in (for further Instructions on future value in...

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Question

The interest rate required for a $2,050 investment to double in 5 years can be found from this equation:

4,100=2,050(1+r2)104,100=2,0501+r210

Find the necessary rate. Your answer should be a decimal, but express it as a percentage to 2 decimal places:

The rate is %

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