How many years will it take to double money in an account earning compound interest at a rate of 6% per year? - account earning high interest savings
We have never discussed in the compound of the class and it is a bonus question, so I appreciate the idea.
If someone would use the formula and method of calculation is more than happy to try to work, but we need to show our work and I do not know how.
It's just a bonus question ...
Thank you!
Saturday, January 9, 2010
Account Earning High Interest Savings How Many Years Will It Take To Double Money In An Account Earning Compound Interest At A Rate Of 6% Per Year?
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2 comments:
2x = 1.06 * x ^ y (x is the original amount in mind and the number of years, is an exponent)
^ 2 = 1.06 and
log y 2 = 1.06 * log
Y = 11.89
A: 11.89 years (or 12 if the answer has to be in completed years)
I think the answer is 11.89 years, when compounded annually.
I can not really show how, as I did in Excel, but on the value and future value calculations based on today.
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