Question

How long will it take an investment of $2000 to double if the investment earns interest at the rate of 4%/year compounded monthly? (Round your answer to one decimal place.

Answer #1

Compound Interest Formula:

A = P(1 + r/n)^(n·t)

A = final amount = $4000.00

P = beginning amont = $2000.00

t = time (in years)

r = rate (as a decimal) = 4/100=0.04

n = number of compounding periods per year = 1

---> 4000 = 2000(1 + 0.04/1)^(t·1)

---> 4000 = 2000(1.04)^t

---> 2 = (1.04)^t

---> log(2) = log(1.04)^t

Now, since exponents come out as multipliers:

---> log(2) = t·log(1.04)

Divide both sides by log(1.04):

log(2)/log(1.04)=t

t=log(2)/log(1.04)

t=0.3010/0.0170

t=17.705

t=17.7

Therefore it will take 17.7 years approximately to double the invesment.

How long will it take an investment of $6000 to double if the
investment earns interest at a rate of 7% per year compounded
semi-annually.

A) Find the interest rate needed for an investment of $8,000 to
double in 14 yr if interest is compounded monthly.
B)How long will it take for an investment of $10,000 to grow to
$12,500 if the investment earns interest at the rate of 8%/year
compounded annually?
C)How long will it take for an investment of $15,000 to double
if the investment earns interest at the rate of 7%/year compounded
continuously?

How long will it take $500 to double if it earns the following
rates? Compounding occurs once a year. Round each answer to two
decimal places.
8%.
9%.
20%.
100%.

How long will it take $400 to double if it earns the following
rates? Compounding occurs once a year. Round each answer to two
decimal places.
A.5%
B.12%
C.19%
D.100%

how long does it take a $3,200 investment to double if it is
invested at 7% compounded monthly?

How long will it take $800 to double if it earns the following
rates? Compounding occurs once a year. Round each answer to two
decimal places.
8%.
year(s)
12%.
year(s)
19%.
year(s)
100%.
year(s)

How long will it take $200 to double if it earns the following
rates? Compounding occurs once a year. Round your answers to two
decimal places.
3%.
year(s)
9%.
year(s)
21%.
year(s)
100%.
year(s)

How long will it take a principal investment of $6000 to grow to
$12,000 if the investment earns interest at the rate of 8%/year
compounded continuously?

TIME FOR A LUMP SUM TO DOUBLE
How long will it take $500 to double if it earns the following
rates? Compounding occurs once a year. Round each answer to two
decimal places.
3%.
year(s)
10%.
year(s)
17%.
year(s)
100%.
year(s)

At 6.5% interest, how long does it take to double your
money?
(Do not round intermediate calculations. Round your answer to 2
decimal places.)
Length of time years At 6.5% interest, how long does it take to
quadruple it?
(Do not round intermediate calculations. Round your answer to 2
decimal places.) Length of time years

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