que no.5 with full process plz
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Let your money amount be X. Then, in 8 years, your money will be worth 2X
The time value of money can be shown as:
X(time = 0)*(1+rate)^(t) = X at time t or X(t), where t stands for time (usually in years, however, this depends on the rate)
In this case, we have:
2X = X*(1+r)^(8); we can cross out X to get
2 = (1+r)^(8) → 2^(1/8) = 1+r → r = 2^(1/8) - 1 = 9.05077327%
hope this helps you out
The time value of money can be shown as:
X(time = 0)*(1+rate)^(t) = X at time t or X(t), where t stands for time (usually in years, however, this depends on the rate)
In this case, we have:
2X = X*(1+r)^(8); we can cross out X to get
2 = (1+r)^(8) → 2^(1/8) = 1+r → r = 2^(1/8) - 1 = 9.05077327%
hope this helps you out
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