## Suppose that $20,000 is invested at 9% interest, compounded annually. After time t, in years, it grows to the amount A given by the f

Question

Suppose that $20,000 is invested at 9% interest, compounded annually. After time t, in years, it grows to the amount A given by the function A(t) = $20,000(1.09)

a) Find the amount of time after which there will be $200,000 in the account.

b) Find the doubling time.

After what amount of time will there be $200,000 in the account?

in progress
0

Mathematics
4 days
2021-07-19T06:26:11+00:00
2021-07-19T06:26:11+00:00 1 Answers
0 views
0
## Answers ( )

Answer:Years = {log(total) -log(Principal)} ÷ log(1 + rate)

Years = [log (200,000) -log (20,000)] / log (1.09)

Years = [5.3010299957 -4.3010299957] / 0.037426497941

Years = 1 / 0.037426497941

Years = 26.7190374471

*************************************************

Finding Doubling Time : (We’ll calculate $100 becoming $200)

Years = {log(total) -log(Principal)} ÷ log(1 + rate)

Years = log (200) -log (100) / log(1.09)

Years = (2.3010299957 -2) / 0.037426497941

Years = .3010299957 / 0.037426497941

Years 8.0432317278

It takes 8.0432317278 years for money to double at 9% per year.

Source:

http://www.1728.org/compint2.htm

Step-by-step explanation: