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$415,000 compounded by 5% in how many years does it double

 Nov 15, 2014

Best Answer 

 #1
avatar+130511 
+5

The amount doesn't matter....we have

2P = P(1.05)t    divide both sides by P ... (see why the amount doesn't mattter??)

2 = (1.05)t       take the log of both sides

log 2 = log(1.05)t     and by a log property, we have

log 2 = t log(1.05)    divide both sides by  log(1.05)

log 2 /  log(1.05) = t = about 14.2 years

 

 Nov 15, 2014
 #1
avatar+130511 
+5
Best Answer

The amount doesn't matter....we have

2P = P(1.05)t    divide both sides by P ... (see why the amount doesn't mattter??)

2 = (1.05)t       take the log of both sides

log 2 = log(1.05)t     and by a log property, we have

log 2 = t log(1.05)    divide both sides by  log(1.05)

log 2 /  log(1.05) = t = about 14.2 years

 

CPhill Nov 15, 2014

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