SOLUTION: hello I just have a question I have been struggling with and was wonderinf if somebody could please help me with it. The question is determine the time it takes to double an inv

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Question 390755: hello I just have a question I have been struggling with and was wonderinf if somebody could please help me with it. The question is
determine the time it takes to double an investment in an account that pays an interest of 4% per annum, compounded quarterly.
Thankyou so much!
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
determine the time it takes to double an investment in an account that pays an interest of 4% per annum, compounded quarterly.
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Let's say you invest "x" dollars at 4%.
Doubling will give you "2x" dollars.
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Formula:
2x = x(1+(0.04/4))^(4t) where t is the number of years.
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2 = (1+0.01)^4t
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Take the log of both sides and solve for "t":
4t*log(1.01) = log2
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4t = log(2)/log(1.01)
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4t = 69.66
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t = 17.42 years
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Cheers,
Stan H.
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