SOLUTION: you deposit $2000 in an account that pays 4.5 % interest compounded annually. Write a model giving the account balance A after T years. In about how many years will the balance dou

Question 391502: you deposit $2000 in an account that pays 4.5 % interest compounded annually. Write a model giving the account balance A after T years. In about how many years will the balance double?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You deposit $2000 in an account that pays 4.5 % interest compounded annually. Write a model giving the account balance A after T years.
A(t) = 2000(1+(0.045))^(t)
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In about how many years will the balance double?
4000 = 2000(1.045)^t
2 = 1.045^t
---
t*log(1.045) = log(2)
---
t = log(2)/log(1.045)
---
t = 15.75 years
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Cheers,
Stan H.
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