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KRISHA MAE R. VILLANUEVA BS BIO 1 MMW SEATWORK

2. At 3% annual interest compounded monthly, how long will it take to double

your money?

GIVEN:
GIVEN: FV=200
FV=20000 P=100
R=0.05 R=0.03
N=12 N=12
T=9
SOLUTION:
SOLUTION:
200=100(1+0.03/12)12t
12(9)
20000= P (1 + 0.05/12) 200=100 (1.0025)12t
20000=P(1.004166667) 2=1.002512t
20000=P(1.566846649) Log(2)=log(1.002512t)
P=12764.49 Log2=(12t)(log 1.0025)
You would have to deposit $12764.49 to have $20000 in 9 years.
Log 2/log1.0025=12t
277.6053016≈12t
t≈23.1

At 3% annual interest it will take approximately 23.1 years to double your

money