Question 998345: An investment of $10,000 with Barnes Bank earns a 2.42% APR compounded monthly.
Determine how long it will take the investment to double
Pleas help, thank you!
Found 2 solutions by tifftiff133, MathTherapy:
Answer by tifftiff133(4)   (Show Source):
You can put this solution on YOUR website! When solving I did the cross multiply divide system to figure out what they would make per month, which I came up with 242, from that perspective then you just have to figure out how many times you need to add that on. I got around 41 to 42 months. Though you should probably double check my work to make sure that I didn't miss anything. Good Luck on your math work!
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! An investment of $10,000 with Barnes Bank earns a 2.42% APR compounded monthly.
Determine how long it will take the investment to double
Pleas help, thank you!
Future value formula:  , with:
P = Principal invested
A = Future value, or in this case, 2P (Original principal amount will double)
i = interest rate (2.42%, or .0242, in this case)
m = compounding periods, per year (12 in this case)
t = time, in years (Unknown)
 ------- Changing to LOGARITHMIC form
 -------- Applying change of base
 , or  years
***Note that original AMOUNT invested DOES NOT MATTER. At an interest rate of (2.42%), and monthly compounding periods, any amount will double in 28.67, or a little over  years.
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