Question 1134808
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Determine the time taken in years,for a sum of money to double if the interest rate is 12,64%p.a compounded {{{highlight(cross(half-yearly))}}} <U>semi-annually</U>.
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<pre>
To answer the question, you need to solve this equation


    {{{(1+0.1264/2)^(2*t)}}} = 2,


fOr t, where t is the time in years.


Take logarithm from both sides


    {{{(2t)*log((1+0.1264/2))}}} = log(2),


simplify 


    2t*log(1.0632) = log(2)


and get  


    t = {{{log((2))/(2*log((1.0632)))}}} = 5.66 years.


So, 6 (six) years is enough to double the starting principal.
</pre>


Solved.