Answer:
Number of year = 11.725 year (Approx.)
Explanation:
Given:
Amount invested = $200
Interest rate = 6% (compounded semi annually)
Future value = 2 x Amount invested
Find:
Number of year
Commutation:
Future value = 2 x Amount invested
Future value = 2 x 200
Future value = $400
Number of year (Semi-annual) = 2n
Interest rate (Semi-annual) = 6% / 2 = 3%
So.
A = P[1+r]ⁿ
400 = 200[1+3%]²ⁿ
2 = [1.03]²ⁿ
n = 11.725 year
Number of year = 11.725 year (Approx.)