Solutions to Chapter 1
With compound interest, your money would grow faster than it would with simple interest, and therefore would require less than 25 years to double. We solve the following equation for r: 422.41 ( (1 + r)10 = 1000 ( r = 9.00% [On a financial calculator, enter: PV = (()422.41, FV = 1000, n = 10, PMT = 0, and compute the interest rate.] 20. ................
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