Question

You invest $4000 in a bank account with 5% interest compounded annually. You are wondering how long it would take for your money to double. What equation will you use to solve the problem and how long will it take for your money to double?

Answer 1

a

Explanation:

edge 2021

Answer 2

The equation is
2p=p (1+r)^t
2=(1+r)^t ....equation

Where r is the interest rate 0.05
Solve the equation for t
T=log (2)÷log (1+r)
T=log(2)÷log(1+0.05)
T=14.2 years
round your answer to get
T=14 years