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Find the APR of a bond that doubles its value in 20 years. Round your answer to the
Chapter 10, Problem 28(choose chapter or problem)
Find the APR of a bond that doubles its value in 20 years. Round your answer to the nearest hundredth of a percent.
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QUESTION:
Find the APR of a bond that doubles its value in 20 years. Round your answer to the nearest hundredth of a percent.
ANSWER:Step 1 of 3
Recall the simple interest formula which gives the future payoff F:
\(F = P\left( {1 + tr} \right)\)
Here, P is the principal amount, r is the APR (annual percentage rate), and t is the term of the bond in years.
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