Question: Hand written solution required (b) If A dollars are initially invested in a bank account which pays yearly interest at the rate of 35%, then
Hand written solution required

(b) If A\" dollars are initially invested in a bank account which pays yearly interest at the rate of 35%, then after u years the account will contain A\" = Al[1 + :r/ 101])" dollars. The amount of money in the account will double (Le. A\" = 2A0) when rt _ log 2 _ log(l + I/l}' (i) Use the linear approximation formula given above [in part (a)(i]} with a suitable choice of x) to show that log + Ifl) 9: % (ii) Hence, show that the number of years n for the sum of money to double is given approximately by 1001052 .. 70 ~ I I (This is known as the \"Rule of 1'0\".) HF
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
