Ask Question
19 March, 15:55

An investment offers to double your money in 30 months (don't believe it). What rate per six months are you being offered? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

+4
Answers (2)
  1. 19 March, 17:32
    0
    The rate of change in 6 months is 14.87%

    Explanation:

    Let a be the amount that the money is multiplied in one month. We know that in 30 months it is multiplied by 2, so if we power a by 30 wew obtain 2:

    a³⁰ = 2

    Thus, 2 = a³⁰ = a⁶*⁵ = (a⁶) ⁵

    (here we use the propiety a^bc = (a^b) ^c = (a^c) ^b)

    We can conclude that a⁶ = 2^ (1/5) = 1.1487

    The rate in 6 months is (1.1487-1) * 100 = 14.87%
  2. 19 March, 17:41
    0
    14.86% every 6 months

    Explanation:

    Let the original amount be a

    An investment offers to double your money in 30 months i. e. 2a in 30 months

    Fv = Pv (1 + x) ⁿ

    Fv future value (i. e. future value of the cash flow after a particular time period.)

    Pv Present value

    x interest

    n number of compounding period

    Fv = Pv (1 + x) ⁿ

    2a = a (1 + x) ^ (30/6)

    2^ (1/5) = 1 + x

    1.1486 = 1 + x

    x = 0.1486 0r 14.86%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An investment offers to double your money in 30 months (don't believe it). What rate per six months are you being offered? (Do not round ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers