SOLUTION: Assume that a savings account earns interest at the rate of 2% compounded monthly . If this account contains $1000 now, how many months will it take for this amount to double if no

Question 725039: Assume that a savings account earns interest at the rate of 2% compounded monthly . If this account contains $1000 now, how many months will it take for this amount to double if no withdrawals are made?
Answer by josgarithmetic(39617) (Show Source): You can put this solution on YOUR website!
The interest rates are usually given for year-periods. The 2% interest rate for the year is 2/12 % per month, or 0.1667% per month or 0.001667 as decimal fraction (given to four significant figures, since 1/6 is a repeating decimal).

The compounding is monthly, as given in your description.
Balance is , where is count of months.

When will the original deposited principle double? How many months?

Next, you can choose either base 10 or Natural for taking logarithms of both side. I will use base 10:

months, almost 35 years.
RELATED QUESTIONS
you deposit 1800$ in a special savings account. the account earns interest at an annual... (answered by dfrazzetto)

$1000 is deposited in a savings account that pays an annual rate of 6%, compounded... (answered by stanbon)

Adair has deposited $361 in a savings account that earns interest at a rate of 1.3%... (answered by jim_thompson5910)

Adair has deposited $361 in a savings account that earns interest at a rate of 1.3%... (answered by ikleyn)

Dirk opened up a savings account with $600. At a yearly interest rate of 5% that is... (answered by lynnlo)

How much must be invested today in a savings account to realize P32,000 in 6 years if... (answered by Theo)

Find the amount in a savings account that earns a simple interest rate of 4% after 3... (answered by rfer)

Steve's bank pays an annual interest rate of 2.8 percent on a savings account. The... (answered by ewatrrr)