SOLUTION: Assume that you place money in an account subject to intrest compounded annually. Use the formula A= P(1+r)t. How long will it take for an investment to increase by 60% at an intre

Question 730691: Assume that you place money in an account subject to intrest compounded annually. Use the formula A= P(1+r)t. How long will it take for an investment to increase by 60% at an intrest rate of 6%?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Assume that you place money in an account subject to intrest compounded annually. Use the formula A= P(1+r)t. How long will it take for an investment to increase by 60% at an interest rate of 6%?
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A(t) = P(1+(r/n))^(nt)
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1.6P = P(1+(0.06/1))^(1*t)
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1.6 = 1.06^t
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t = log(1.6)/log(1.06)
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t = 8.066 years
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Cheers,
Stan H.
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