SOLUTION: Use the compound interest equation A= P(1 + r/n)^nt to find how long, to the nearest tenth of a year, it will take a $5000 investment to double if it is invested at 7% interest com

Question 37809: Use the compound interest equation A= P(1 + r/n)^nt to find how long, to the nearest tenth of a year, it will take a $5000 investment to double if it is invested at 7% interest compounded quarterly.
Answer by Alwayscheerful(414) (Show Source): You can put this solution on YOUR website!
In your compound interest formula,
P is the principle (5000)
r is the rate (.07)
n is the number of times it compounds (4)
t is the time (variable)

Since you start out with $5000 and you want it to double, A will be $10,000.
Now all you need to do is plug the numbers into the formula.

Now to solve for t, you need to use logs.

Round to the nearest tenth
Answer: years
Hope this helps!
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