document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1201799>Question 1201799</A>: <I><SPAN STYLE=\"word-break: break-all;\"> M wishes to determine how long it will take an initial deposit of $10,000 to double.<BR>\n" );
document.write( "Required:<BR>\n" );
document.write( "a) If M earns 10% annual interest on the deposit, how long will it take for him to double his money?<BR>\n" );
document.write( "b) How long will it take if he earns only 7% annual interest?<BR>\n" );
document.write( "c) Reviewing your findings in parts a and b, indicate what relationship exists between the interest rate and the amount of time it will take M to double his money.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #836305 by </B><A HREF=/tutors/aboutme.mpl?userid=mananth><B>mananth(16946)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mananth><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=mananth><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=836305\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Present value   $10000<BR>\n" );
document.write( "Future value double = 20000<BR>\n" );
document.write( "rate = 10%\r<BR>\n" );
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document.write( "Present Value=Future Value/(1+r)n\r<BR>\n" );
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document.write( "10000 = 20000/(1+0.1)^n\r<BR>\n" );
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document.write( "(1.1)^n = 20000/10000\r<BR>\n" );
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document.write( "1.1^n = 2\r<BR>\n" );
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document.write( "n = log2/log1.1\r<BR>\n" );
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document.write( "= 7.2725 years\r<BR>\n" );
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document.write( "How long will it take if he earns only 7% annual interest?\r<BR>\n" );
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document.write( "same formula same method 10.2448 years\r<BR>\n" );
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document.write( "it is clear you can deduce\r<BR>\n" );
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document.write( " </SPAN>\n" );
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