Question 138279: Suppose $500 is invested at 6% annual inerest compounded twice a year. When will the investment be worth $1000? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose $500 is invested at 6% annual inerest compounded twice a year. When will the investment be worth $1000?
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A(t) = P(1+(r/n))^(nt)
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1000 = 500(1+(0.06/2))^(2t)
2 = (1.03)^2t
2t*log(1.03) = log2
2t = log2/log1.03
2t = 23.4498
t = 11.7249 years
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Cheers,
Stan H.
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