Question 792779: How long would it take $100 to double if it were invested in a bank that pays 6% per year? Found 2 solutions by Simpso1, JulietG:Answer by Simpso1(1) (Show Source):
You can put this solution on YOUR website! Let's assume the interest is only compounded once per year.
In the first year, 100 + 6% = 106
The second year, 106 + 6% = 106 + 6.36 = 112.36
The third year, 112.36 + 6% = 112.36 + 6.74 = 119.10
Fourth year, 119.10 + 6% = 119.10 + 7.15 = 126.25
Fifth year, 126.25 * 1.06 = 133.83
Sixth year, 133.83 * 1.06 = 141.86
7 -> 141.86 * 1.06 = 150.37
8 -> 150.37 * 1.06 = 159.39
9 -> 159.39 * 1.06 = 168.95
10 - > 168.95*1.06 = 179.09
11 -> 179.09*1.06 = 189.84
12 -> 189.84*1.06= 201.23
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It will take 12 years to double your money (give or take a few days).
Note: numbers may be off a few pennies due to rounding, but it doesn't change the years. See how quickly compounded interest adds up!
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