simple interest question

label Mathematics
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schedule 1 Day
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A banker tell you he has a simple interest CD that will double your money in 14 years. If you invest $10,000; find the following

a.      How much should you have at the end of the 14 years?

b.   What is the annual interest rate for this CD?

c. how much time would be required to triple your money?

Jun 1st, 2015

a)10,000*2=20,000

b)A=P(1+r^t)

20,000=10,000(1+r^14)

20,000=10,000+10,000 r^14)

10000=10000r^14


am working on  these dear..............will send you

Jun 1st, 2015

b)r=(1/t)(A/P-1)

r=(1/14)(20,000/10,000-1)

0.071*100

7.1%

c)t = (1/0.071)((30000/10000) - 1) = 28.17
t = 28.17 years

Jun 1st, 2015

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