SOLUTION: To double my money, if $600 is invested at 8% compounded monthly by choosing the appropriate formula and solving it for t? What is the formula?
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Question 1059989: To double my money, if $600 is invested at 8% compounded monthly by choosing the appropriate formula and solving it for t? What is the formula? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! To double my money, if $600 is invested at 8% compounded monthly by choosing the appropriate formula and solving it for t? What is the formula?
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Standard compounding formula:: A(t) = P(1+(r/n))^(n*t)
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Doubling your investment gives:: 2*P = P(1+(r/n)^(n*t)
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Your Problem::
2*600 = 600(1+(0.08/12))^(12*t)
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(1.0067)^(12t) = 2
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12t*log(1.0067) = log(2)
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12t = log(2)/log(1.0067) = 103.8
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time = 103.8/12 = 8.65 years = 8yrs 8 months
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Cheers,
Stan H.
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