Question

Cora invests $1000 at 5% compounded semi-annually. How long will it take, to the

nearest whole year, for her money to double? Use the formula A=P(1+r/n)^(nt),
where 0.05 and n=2 to find the answer.
It will take years for Cora's money to double when invested at 5%
compounded semi-annually
The solution is

Answer 1

15 Years or 14.5 Years

Explanation:

According to the Question,

• Given That, Cora invests $1000 at Rate of 5% Per Annum. Interest is compounded semi-annually, After What time her money to get double.

• We Know, the formula A=P(1+r/n)^(nt) (where r=0.05 , p=1000 , A=2000 , n=2)

Put the Given value in Formula, We get

2000 = 1000 (1 + 0.05/2) ^ 2t

2 = (1+0.025)^2t

2 = (1.025)^2t ⇔ 1.025^30 = 2.0975 ≈ 2

Thus, 2t = 30 ⇒ t = 15 Years

OR

2 = (1.025)^2t ⇔ 1.025^29 = 2.0464 ≈ 2

Thus, 2t = 29 ⇒ t = 14.5 Years