Question 890670: deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?
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Compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per compounding period, n=number of periods, A=amt after n-periods
For given problem:
compounding period=one year
A/P=2
i=6%=.06
..
A/P=(1+.06)^n
2=1.06^n
nlog1.06=log2
n=log2/log1.06
n=11.9
how long would it take to double? 11.9 years
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