Respuesta :

Answer:

Interest rate of 7%.

Step-by-step explanation:

The compound interest formula is given by:

[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]

Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.

In this question:

We want to find t for which [tex]A(t) = 2P[/tex] when [tex]n = 1, t = 10[/tex]. So

[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]

[tex]2P = P(1 + r)^{10}[/tex]

[tex](1 + r)^10 = 2[/tex]

[tex]\sqrt[10]{(1 + r)^10} = \sqrt[10]{2}[/tex]

[tex]1 + r = 1.07[/tex]

[tex]r = 0.07[/tex]

So a interest rate of 7%.

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