SOLUTION: Find out how long it takes a $2500 investment to double if it is invested at 9% compounded semiannually. round to the nearest tenth of a year.

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Question 545735: Find out how long it takes a $2500 investment to double if it is invested at 9% compounded semiannually. round to the nearest tenth of a year.
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Principal P = 2500
Amount= 5000
years=n
compounded (t) 2
Rate = 9 0.05
Amount = P*((n+r)/n)^n

5000 = 2500 *( 1 + 0.05 )^ n*t
2 = *( 1 + 0.05 )^ n* 2
ln 2 = 2 n *ln 1.05
0.69 = 2 0.04 *n
7.87 = n
m.ananth@hotmail.ca