What annually compounded rate per year will give the same value at the end of 10 years as 7% p.a. simple interest?
Question
Solution 1
To solve this problem, we need to equate the future value of an investment under simple interest and compound interest and solve for the compound interest rate.
Step 1: Calculate the future value with simple interest The formula for simple interest is FV = P(1 + rt), where FV is the future value, P Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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