SOLUTION: how long does it take to double an investment of $1000 in an account that pays 8% annual interest rate if interest is compounded quarterly?

Question 613952: how long does it take to double an investment of $1000 in an account that pays 8% annual interest rate if interest is compounded quarterly?
Answer by unlockmath(1688) (Show Source): You can put this solution on YOUR website!
Hello,
The formula to use is:
Amount = deposit(1+rate/(n)umber of times in a year)^n(t)ime
Plug in the numbers:
2000=1000(1+.08/4)^4t
Divide each side by 1000 to get: (Note:(1+.08/4)=1.02
2=1.02^4t
Use log
Log2=4tlog1.02
Divide both sides by 4log 1.02:
log2/4log 1.02=t
Grab your scientific calculator:
t=8.75 years (Approximately)
Make sense?
RJ
www.math-unlock.com
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