Mar 5, 2010 #1 S sahars New member Joined Oct 27, 2008 Messages 2 Reaction score 0 Points 1 A sum P0 is invested at 12% interest compounded monthly. How soon will it double ? (
Mar 5, 2010 #2 P Peabody New member Joined Jul 5, 2009 Messages 5 Reaction score 0 Points 1 Use A = P(1+r)^n Here A = 2P , r = 12/12 = 1% per month n = 12k 2P = P ( 1.01)^12k 2 = (1.01)^12k Take logs of both sides log 2 = 12k log 1.01 k = log 2 /12 log 1.01 = 5.8 years
Use A = P(1+r)^n Here A = 2P , r = 12/12 = 1% per month n = 12k 2P = P ( 1.01)^12k 2 = (1.01)^12k Take logs of both sides log 2 = 12k log 1.01 k = log 2 /12 log 1.01 = 5.8 years