The compound interest formula for n compounding per year
.
(Write original equation)
(Divide each side by P)
(
)
(Divide each side by n)
The above equation solve for t is
.
For annually compounding, n = 1, invested rate
, Principle P = 1000 dollars amount and A = 2000 dollars.
(Write original equation)
(Substitute values of A, P, r and n)
(Simplify)
(
)
(Use calculator)
(Simplify)
The value of time,
years.
The compound interest formula for n compounding per year
.
(Write original equation)
(Divide each side by P)
(
)
(Divide each side by n)
The above equation solve for t is
.
For monthly compounding, n = 12, invested rate
, Principle P = 1000 dollars amount and A = 2000 dollars.
(Write original equation)
(Substitute values of A, P, r and n)
(Simplify)
(
)
(Use calculator)
(Simplify)
The value of time,
years.
The compound interest formula for n compounding per year
.
(Write original equation)
(Divide each side by P)
(
)
(Divide each side by n)
The above equation solve for t is
.
For daily compounding, n = 365, invested rate
, Principle P = 1000 dollars amount and A = 2000 dollars.
(Write original equation)
(Substitute values of A, P, r and n)
(Simplify)
(
)
(Use calculator)
(Simplify)
The value of time,
years.