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Find how long it takes $1400.00 to double if it is invested at 9% compounded annually?

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Final answer:

It takes approximately 8 years for $1400 to double at a 9% annual compound interest rate.

Step-by-step explanation:

To find out how long it takes for $1400 to double when invested at 9% compounded annually, we can use the formula for compound interest: A = P(1 + r/n)^{nt}, where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), n is the number of times that interest is compounded per year, and t is the time the money is invested for in years.

Since we want the principal to double, A is $2800 (which is $1400 x 2), P is $1400, r is 0.09 (9% as a decimal), and n is 1 since it is compounded annually. Plugging the values into the formula:

$2800 = $1400(1 + 0.09/1)^{1t}

We can simplify this to

2 = (1 + 0.09)^t

Using logarithms to solve for t:

log(2) = t * log(1.09)

t = log(2) / log(1.09)

After calculating, we get:

t = 8.0432 years

So, it will take approximately 8 years for $1400 to double at a 9% annual compound interest rate.

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