Question

Wilson wants to know how long it will take his $1000 investment to double

in an account that is earning 6% interest compounded quarterly. He sets up
the equation 2 = (1.015)" to solve for t. How can he rewrite this exponential
equation as a logarithm?

Answer 1

Explanation:

Take the log of both sides:

log(2) = t*log 1.015, so that:

log(2)

t = --------------- = 46.6 compounding periods, which is 46.6/4, or 11.6 years

log 1.015

Can't write this exponential equation as a logarithm; instead, CAN write it in logarithmic form.