If it takes 4 years for $2000 to accumulate to $4000, find the compound interest rate
+118616 If it takes 4 years for $2000 to accumulate to $4000, find the compound interest rate
Assuming that it is compounding yearly
4000=2000(1+r)^4
2=(1+r)^4
2^(1/4)=1+r
2^0.25 -1=r
$${{\mathtt{2}}}^{{\mathtt{0.25}}}{\mathtt{\,-\,}}{\mathtt{1}} = {\mathtt{0.189\: \!207\: \!115\: \!002\: \!721\: \!1}}$$
rate is 18.9%
+118616 If it takes 4 years for $2000 to accumulate to $4000, find the compound interest rate
Assuming that it is compounding yearly
4000=2000(1+r)^4
2=(1+r)^4
2^(1/4)=1+r
2^0.25 -1=r
$${{\mathtt{2}}}^{{\mathtt{0.25}}}{\mathtt{\,-\,}}{\mathtt{1}} = {\mathtt{0.189\: \!207\: \!115\: \!002\: \!721\: \!1}}$$
rate is 18.9%
