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An investment offers to quadruple your money in 36 months (dont believe it). What rate per year are you being offered? (Do n
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Answer #1

Amount invested = $1
Desired amount = $4 (quadruple)
Time period = 36 months

Amount invested * (1 + Monthly interest rate)^Time period = Desired amount
$1 * (1 + Monthly interest rate)^36 = $4
(1 + Monthly interest rate)^36 = 4
1 + Monthly interest rate = 1.03926
Monthly interest rate = 0.03926 or 3.926%

Annual interest rate = 12 * Monthly interest rate
Annual interest rate = 12 * 3.926%
Annual interest rate = 47.11%

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