Question

How many years will it take 10,000 dollars to grow to 20,000 dollars if it is invested at 6% compounded monthly? Label units.

Answer 1

Solution: Let the amount 10,000 dollars grows to 20,000 dollars in 'n' months.

Here rate of interest is 6% i.e. 0.06, so

Now, if P, is principle, i, is interest rate, n, is time and A is the total amount, then

Therefore

  

Or, Therefore n = 139 months

Thus the amount will get double in 139 months or 11 years 7 months or 11.6 years approximately.