Suppose that $ 1 , 000 is invested at 7 % interest compounded monthly. Use the formula A = P ( 1 + r n ) n t a. How long (to the nearest month) before the value is $ 1 , 250 ? b. How long (to the nearest month) before the money doubles? c. What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years?
Suppose that $ 1 , 000 is invested at 7 % interest compounded monthly. Use the formula A = P ( 1 + r n ) n t a. How long (to the nearest month) before the value is $ 1 , 250 ? b. How long (to the nearest month) before the money doubles? c. What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years?
Solution Summary: The author explains how to determine the time needed before the value becomes 1,250 for the given condition.
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