An investment offers to triple your money in 24 months (don’t believe it). What

Question

An investment offers to triple your money in 24 months (don’t believe it). What rate per six months are you being offered ? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places).

Rate ___% An investment offers to triple your money in 24 months (don’t believe it). What rate per six months are you being offered ? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places).

Rate ___% (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places).

Rate ___%
Rate ___%

Explanation / Answer

Future value = present value * (1+r)^n

r = interest rate per period

n = number of periods

=>

present value = x

future value = 3x

number of periods = 24/6 = 4

=>

3x = x * (1+ r)^4

=>

rate per period r = 31.61%

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