SOLUTION: bill invests 80000 at 20% annual compound interest. How many years will it take for him to double this money? Assume that Bill only gets paid interest at the end of each year, roun
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Question 1100225: bill invests 80000 at 20% annual compound interest. How many years will it take for him to double this money? Assume that Bill only gets paid interest at the end of each year, round your answer to the nearest year. A=P(1+r)^n Answer by ikleyn(52781) (Show Source):
As they just explained to you, the formula for the growing amount (Future Value of the Account) is
A = = = .
And they want you to find n, when A becomes doubled 80000, i.e.
160000 = .
Divide both sides by 80000. You will get
2 = ====> = = .
============> n = = = 3.8 years.
Answer. It will happen after 4 years.
After 4 years happy Bill will have more than doubled amount at his account: = 2.0736.
