Question 593880: How many years will it take an investment of $1000 to double itself when interest is compunded annually at 6%? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How many years will it take an investment of $1000 to double itself when interest is compunded annually at 6%?
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General Formula: A(t) = P(1+(r/n))^(nt)
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Your problem:
2P = P(1+ (0.06/1))^(1*t)
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(1.06)^t = 2
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Take the ln of both sides:
t = ln(2)/ln(1.06) = 11.9 years
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Cheers,
Stan H.
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