Answer:
The rate of change in 6 months is 14.87%
Explanation:
Let a be the amount that the money is multiplied in one month. We know that in 30 months it is multiplied by 2, so if we power a by 30 wew obtain 2:
a³⁰ = 2
Thus, 2 = a³⁰ = a⁶*⁵ = (a⁶)⁵
(here we use the propiety a^bc = (a^b)^c = (a^c)^b)
We can conclude that a⁶ = 2^(1/5) = 1.1487
The rate in 6 months is (1.1487-1)*100 = 14.87%
Answer:
14.86% every 6 months
Explanation:
Let the original amount be a
An investment offers to double your money in 30 months i.e. 2a in 30 months
Fv = Pv (1 + x)ⁿ
Fv future value (i.e. future value of the cash flow after a particular time period. )
Pv Present value
x interest
n number of compounding period
Fv = Pv (1 + x)ⁿ
2a = a (1 + x)^(30/6)
2^(1/5)= 1 + x
1.1486 = 1 + x
x = 0.1486 0r 14.86%
