SOLUTION: Use the compound interest equation A= P(1 + r/n)^nt to find how long, to the nearest tenth of a year, it will take a $5000 investment to double if it is invested at 7% interest com

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Question 37809: Use the compound interest equation A= P(1 + r/n)^nt to find how long, to the nearest tenth of a year, it will take a $5000 investment to double if it is invested at 7% interest compounded quarterly.
Answer by Alwayscheerful(414) About Me  (Show Source):
You can put this solution on YOUR website!
In your compound interest formula,
P is the principle (5000)
r is the rate (.07)
n is the number of times it compounds (4)
t is the time (variable)
A=P%281%2Br%2Fn%29%5Ent
Since you start out with $5000 and you want it to double, A will be $10,000.
Now all you need to do is plug the numbers into the formula.
10000=5000%281%2B%28.07%2F4%29%29%5E%284t%29
2=%281%2B.0175%29%5E%284t%29
2=1.0175%5E%284t%29
Now to solve for t, you need to use logs.
log%282%29=log%281.0175%29%5E%284t%29
log%282%29%2Flog%281.0175%29=4t
39.9539818154=4t
t=9.988495
Round to the nearest tenth
Answer: highlight%2810%29years
Hope this helps!