.
Compound Interest
Problem 1.3 (complexity 2). Solution
How long will it take to double the principal if money is invested at
compounded
times per year?
Solution
Use the formula for compound interest with
P = 1
,
A = 2
,
, and
.
Taking natural logarithms on both sides,
Using the power rule for logarithms gives
Use a calculator.
Answer:
Copyright
©
1998-2001 MathAid, LLC. All rights reserved.