Amanda K.

asked • 02/02/16

Much help needed! Please help!!!!!!

Suppose you have 125,000 in savings and you put in a bank account that earns 2% interest. How long would it take this amount to double?

Andrew M.

Actually, we need to know if the interest compounded annually, semiannually, quarterly, or what.
Your question is incomplete.
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02/02/16

2 Answers By Expert Tutors

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Patrick C. answered • 02/02/16

Tutor
New to Wyzant

Minnesta Grad For ESL, GED, English, Reading, and Writing.

Andrew M.

Patrick,
your answer is not accounting for the fact that in each
subsequent year after the first there is a higher amount
in the account.... It does not remain at a balance of
125,000.  After 1 year the account has 127,500 so the
next time the interest is compounded it will be more
than a $2500 increase...
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02/03/16

Patrick C.

No wonder I can't make any money on the stock market.
 
Pat
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02/03/16

Andrew M. answered • 02/03/16

Tutor
New to Wyzant

Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/Honors

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