SOLUTION: Find the numbers of years, to the nearest hundredth, it will take for money deposited in an account paying 6% compounded monthly to double.

Question 1130471: Find the numbers of years, to the nearest hundredth, it will take for money deposited in an account paying 6% compounded monthly to double.
Answer by ikleyn(52914) (Show Source): You can put this solution on YOUR website!
.

FV = ,


where FV is the future value;  P is the principal deposit;  n is the number of years.


In out case  FV = 2P,   so


2 =  = 


log(2) = 12n*log(1.005)


n =  = 11.58 years.


Answer.  Approximately 11 years and 7 months.  12 years is totally enough.

Solved.

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