Suppose $500 is invested at 6% annual interest compounded twice a year. When will the investment be worth $1000.

Question

thachthao · Answer

Answer:    Step-by-step explanation:  V=P(1+r/c)^{(ct)}      V=P(1+.06/2)^{(2t)}      1000=500(1.03)^{(2t)}      (1.03)^{2t}=2      2t=ln2/(ln1.03)      t=ln2/(2ln(1.03))      t approx 11.7 years

Leave a Comment Cancel reply