SOLUTION: determine how much time is required for an investement to double in value if interest is earned at the rate of 6.25 % compounded annually?

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Question 325021: determine how much time is required for an investement to double in value if interest is earned at the rate of 6.25 % compounded annually?
Answer by galactus(183) About Me  (Show Source):
You can put this solution on YOUR website!
The formula for interest is
A=P%281%2Br%2Fn%29%5E%28nt%29
Since the problem asks for how long to double, then A=2P.
2P=P%281%2Br%2Fn%29%5E%28nt%29
r=.0625 and n=1
2=%281.0625%29%5Et
ln%282%29=t%2Aln%281.0625%29
t=ln%282%29%2Fln%281.0625%29=11.433
or about 11 years, 158 days