Question 86910: Approximately how long will it take $100 to grow to $500 at 8% annual interest and compounded 12 times per year? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Approximately how long will it take $100 to grow to $500 at 8% annual interest and compounded 12 times per year?
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A(t) = P(1+r/n)^(nt)
500 = 100(1+0.08/12)^(12t)
5 = 1.0066666666^12t
Take the log of both sides to get:
12t(log1.006666666...)= log5
12t = [log5]/[log1.006666666...]
12t = 242.22
t = 20.18 years
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Cheers,
Stan H.
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