Find how long it takes $1500 to double if it is invested at 6% interest compounded semiannually. Use the formula

A=P ( 1 + R/N)nt to solve the compound interest problem

it will take approximately years??????

Find how long it takes $1500 to double if it is invested at 6% interest compounded semiannually. Use the formula

A=P ( 1 + R/N)nt to solve the compound interest problem

it will take approximately years??????

Tutors, please sign in to answer this question.

Olney, MD

A = P(1 + r/n)^{nt}

We want the investment to double, so that A = 2P. We also know that r = 0.06 (6% as a decimal value), n=2 (semi-annual). We need to solve for
**t**, the number of years needed to double the investment.

2P = P(1 + (0.06/2))^{2t}

2 = (1.03)^{2t} [Combined terms and divided both sides by P]

To get the t out of the exponent, take the log. I'll use ln (natural log) but you can use log_{10} or any other base log:

ln(2) = 2t ln(1.03) [ln(1.03)^{2t} = 2tln(1.03)]

ln(2)/2ln(1.03) = t [Use a calculator to compute the logs (ln)]

- Math Help 5446
- Math 9858
- Math Word Problem 4501
- Math Problem 1017
- Math Question 798
- Finite Mathematics 581
- Probability 1436
- Probability & Statistics 735
- Math Equations 957
- Algebra Help 967