Question

Use the formula A=P(1+r/n)ⁿt to solve the compound interest problem

Find how long it takes for $ 900 to double if it is invested at 6 % interest compounded monthly.
The money will double in value in approximately years.

Answer 1

11.6 years

Explanation:

1800 = 900 x (1 + 0.06/12)^ 12t

1800 = 900 x (1 + 0.005)^12t

1800 = 900 x (1.005)^12t

1800 = 900 x 1.061678^t

1800/900 = (900 x 1.061678^t)/ 900

2 = 1.061678^t

log(1.061678) 2 = t

t = 11.5813

t = 11.6