if a principal of $1,000 is saved at an annual yeild of 8% and the interes is kept in the account, in how many years will the principal double in value?
2006-09-07 12:15:38 · 3 answers · asked by Nafertiti 2 in Science & Mathematics ➔ Mathematics
To calculate how the money will increase in value we write it like this:
1000*1.08^x = 2000
1.08^x = 2000/1000
x log(1.08) = log(2000/1000)
x = log(2000/1000)/log(1.08)
x = 9.00646834
It will take just over 9 (nine) years for the money to double in value. To make a calculation like this you need to use a calculator or you can use Google for example.
2006-09-07 12:45:03 · answer #1 · answered by Cameron H 2 · 0⤊ 0⤋
In 9 years.
2006-09-07 19:23:03 · answer #2 · answered by bruinfan 7 · 2⤊ 0⤋
Are we going to answer ALL your math problems/homework tonight, or are you actually going to do your own homework at some point?
2006-09-07 19:22:22 · answer #3 · answered by AzOasis8 6 · 0⤊ 0⤋