SOLUTION: find the time taken for a certain sum of money to double if the interest rate is 12% per annum compounded semi-annually
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Question 1087828: find the time taken for a certain sum of money to double if the interest rate is 12% per annum compounded semi-annually
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
find the time taken for a certain sum of money to double if the interest rate is 12% per annum compounded semi-annually
:
let the original amt = 1,
then
the final amt = 2
:
Compound interest formula
,where:
A = Final amt (2)
P = Initial amt (1)
r = interest rate in decimal form (.12)
n = Compounding times per year (2)
t = no. of yrs
:
2 = ,
Use nat logs
log equiv of exponents
2t =
use your calc
2t = 11.9
t = 11.9/2
t = 5.95 ~ 6 yrs
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