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Example Solving Word Problems: Compound Interest - Find time to double
See More Compound Interest Word Problem Examples solved by the Algebra Word Problem Solver.
- Find Compound Interest
- Find Compound Interest Amount
- Find Compound Interest Rate
- Find Compound Interest Present Value
- Find Compound Interest Future Value
- Continuously Compounded Interest
What You Enter
If you invest $1000 in a savings account at 6% nominal annual interest compounded monthly, how long will it take to double?
What You Get
Let A = Final Amount
Let P = Principle
Let r = Rate
Let t = Time
Let n = Interest periods per year
Given: P = $1000
Given: r = 6%
Given: n = 12
A = 2 * P = 2 * 1000 = $ 2000.00 Principles Doubles
nt
A = P(1+r/n)
12t
2000 = 1000(1+0.06/12)
12t
2 = (1.005)
12t
Ln(2) = Ln(1.005)
Ln(2) = 12tLn(1.005) t = (Ln(2)/(12*Ln(1.005)))
t = 11.58 years
Solution: t = 11.58 years
