what would the doubling time be if the initial investment were $1,000? $10,000? what effect does changing the principal have on the doubling time, and why?

Question

Homework Question for my Pre Calculus class.

Answer 1

The doubling time is the same regardless of the initial investment.  The standard formula is:

 

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

 

To solve for time, you will always initially divide by P and get: A/P = (1+ r/n)^nt  and A/P is always 2 since we are trying to double the investment