SOLUTION: Joe deposits $1000 in an account that earns 5% annual interest compounded semiannually. find out how long it will take for the initial amount to double

Question 255701: Joe deposits $1000 in an account that earns 5% annual interest compounded semiannually. find out how long it will take for the initial amount to double
Answer by EMStelley(208) (Show Source): You can put this solution on YOUR website!
Remember that the equation for compound interest is:

Here, P = 1000, r = 0.05, A = 2000 (initial amount doubled) and n = 2. So we have:

Dividing both sides by 1000 gives

Now we take the log of both sides in order to get the exponent down:

Divide both sides by log(1.025):

Last, divide both sides by 2:

Using the calculator we have t = 14.04 years.
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