SOLUTION: How long will it take to double an investment at 5.4% compounded monthly? Round your answer to the nearest tenth of a year. _____years

Algebra ->  Finance -> SOLUTION: How long will it take to double an investment at 5.4% compounded monthly? Round your answer to the nearest tenth of a year. _____years      Log On


   

Question 1166445: How long will it take to double an investment at 5.4% compounded monthly? Round your answer to the nearest tenth of a year.
_____years
Found 2 solutions by josgarithmetic, ikleyn:
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
1%2A%281%2B0.054%2F12%29%5Em=2 in which m is in MONTHS.
Solve this for m and then compute m%2F12 for how many years.

Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.

In this problem, you have NO right to round the answer to "nearest tenth of a year" - it contradicts to the problem's meaning.

The answer is an integer number of months, since the month is a quantum of time, when the account is compounded monthly.


AGAIN : the instruction CONTRADICTS to the meaning of the problem.