Question

5. How long will it take an account paying 6% annual interest to double if it is compounded monthly?

Answer 1

n = (In (Cf/Ci)) / In (1 + R)

Cf = 2x

Ci = x

R = 0.06

n = In(2x/x) /In(1 + 0.06)

n = 0.6931 / 0.058

n = 11.95 months or approximately 1 year