Welcome :: Homework Help and Answers :: Mathskey.com

Recent Visits

    
Welcome to Mathskey.com Question & Answers Community. Ask any math/science homework question and receive answers from other members of the community.

13,435 questions

17,804 answers

1,438 comments

774,965 users

plz help

0 votes
4) You invest $1000 in an account paying 6% compounded monthly. How long will it take to double your investment?
closed with the note: no longer needed.
asked Sep 13, 2014 in PRECALCULUS by secretslocked Rookie
closed Sep 14, 2014 by secretslocked

1 Answer

0 votes

(4).

Calculate the  Compound Interest by using formula for n compoundings per year :

A = P(1 + r/n)n * t, where A = balance, P = principal, t = time in years and r = annual interest rate (in decimal form).

Principal : P = $1000.

Amount : A = double investment = $2000.

Annual interest rate : r = 6 % = 0.06.

For monthly compounding : n = 12.

To find the value of t in years, substitute A = 2000, P = 1000, n = 12 and r = 0.06 in the above formula.

image

The time is 11.58 years.

answered Sep 13, 2014 by casacop Expert

Related questions

asked May 4, 2014 in ALGEBRA 2 by anonymous
asked Jul 9, 2014 in ALGEBRA 1 by anonymous
asked Jun 25, 2014 in ALGEBRA 2 by anonymous
asked Jun 17, 2014 in ALGEBRA 1 by anonymous
asked May 4, 2014 in ALGEBRA 2 by anonymous
...