Question 344233: Kurt invest $5,000 in an account with a 6.25% intreast rate a year. After how many years will his investment be $10,000?
I really prefer a example and formula so I know how to do it myself instead of just a answer. Thanks.
Answer by Alan3354(69443)   (Show Source):
You can put this solution on YOUR website! Kurt invest $5,000 in an account with a 6.25% intreast rate a year. After how many years will his investment be $10,000?
FV = PV*(1 + r)^n ... r = %interest/100, n = years, FV = Future Value, PV = present value
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10000 = 5000*(1 + 0.0625)^n
(1.0625)^n = 2
n*log(1.0625) = log(2)
n = log(2)/log(1.0625)
n =~ 11.4 years
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It's as good an example as any.
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