+0  
 
0
1525
5
avatar

if an amount of money is invested at an annual interest rate of 6%,it doubles every 12 years.if alejandra invests $500, how llong will it take her investment to exceed $2000 (assuming she doesn't contribute any additional funds)?

 Feb 19, 2016
 #3
avatar+118667 
0

if an amount of money is invested at an annual interest rate of 6%,it doubles every 12 years.if alejandra invests $500, how llong will it take her investment to exceed $2000 (assuming she doesn't contribute any additional funds)?

 

WEll it doubles every 12 years so    (assuming the initial statement is correct)

 

start                       $500

beginning of 12th year    $1000

beginnnig of 24th year    $2000

So 24 years. 

 Feb 19, 2016
 #4
avatar
0

In 24 years, $500 would have grown to $2,024.47 @ 6% comp. annually. The formula you use is this: FV=PV(1 + R)^N, FV=Future value, PV=Present value, R=Interest rate per period, N=Number of periods.

 Feb 19, 2016

0 Online Users