- #1
cjp88
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Homework Statement
1. What interest rate is required to turn $1000 into $1500 in 5 years if the
interest is compounded:
a) annually
b) monthly
(round your answer to the nearest tenth of a percent)
Homework Equations
I'm using the formula: (A/P)^1/n - 1 = i (interest)
The Attempt at a Solution
My question here is how am I supposed to answer this with the nearest tenth of a percent because of the answer.
1500/1000 = 1.5
1.5^(1/5) = 1.084471771
1.084471771 – 1 = 0.084471771
This could be 0.1
1500/1000 = 1.5
1.5^(1/60) = 1.006780637
1.006780637 – 1 = 0.006780637
Rounding to the nearest tenth of a percent would give you 0.0
The answers just don't look "right" to me.
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