How long it will take 2000$ to double if it is invested at 6% interest compounded semi annually

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How long it will take 2000$ to double if it is invested at 6% interest compounded semi annually

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Khải Quang 3 years 2021-08-25T05:34:45+00:00 1 Answers 11 views 0

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  1. Thunguyet
    0
    2021-08-25T05:36:23+00:00
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    Answer:

    Number of year = 11.725 year (Approx.)

    Step-by-step explanation:

    Given:

    Amount invested = $200

    Interest rate = 6% (compounded semi annually)

    Future value = 2 x Amount invested

    Find:

    Number of year

    Commutation:

    Future value = 2 x Amount invested

    Future value = 2 x 200

    Future value = $400

    Number of year (Semi-annual) = 2n

    Interest rate (Semi-annual) = 6% / 2 = 3%

    So.

    A = P[1+r]ⁿ

    400 = 200[1+3%]²ⁿ

    2 = [1.03]²ⁿ

    n = 11.725 year

    Number of year = 11.725 year (Approx.)

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