Question

If $10,000 is placed in an investment paying 4.8% yearly interest compounded annually, how long will it take for the account to double?

Answer 1

15 years.

Explanation:

We have the equation:

20000 = 10000(1 + 0.048)^t where t is the number of years.

1.048 t = 20000/10000 = 2

Taking logs:

t ln 1.048 = ln 2

t = ln 2 / ln 1.048

t = 14.78