document.write( "Question 1134808: Determine the time taken in years,for a sum of money to double if the interest rate is 12,64%p.a compounded half-yearly.
\n" ); document.write( " \n" ); document.write( "

Algebra.Com's Answer #752287 by ikleyn(53763) $\"\"$ $\"About$

You can put this solution on YOUR website!
.
\n" ); document.write( "Determine the time taken in years,for a sum of money to double if the interest rate is 12,64%p.a compounded $\"highlight%28cross%28half-yearly%29%29\"$ semi-annually.
\n" ); document.write( "~~~~~~~~~~~~~~~~~\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "

\r\n" );
document.write( "To answer the question, you need to solve this equation\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "     = 2,\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "fOr t, where t is the time in years.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Take logarithm from both sides\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "     = log(2),\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "simplify \r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "    2t*log(1.0632) = log(2)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "and get  \r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "    t =  = 5.66 years.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "So, 6 (six) years is enough to double the starting principal.\r\n" );
document.write( "

\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Solved.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

\n" );