Question

How long will it take for a $1000 investment to double if the bank gives you a rate of .25%?

Answer 1

Number of period(n) =277.65

Step-by-step explanation:

Given:

Amount invested(p) = $1,000

Amount at the end of period(A) = 2 × Amount invested = 2 × $1,000 = $2,000

Rate of interest(r) = 0.25% = 0.0025

Find:

Number of period(n) = ?

Computation:

`A=p(1+r)^n\\\\2,000 = 1,000 (1+0.0025)^n\\\\2=(1.0025)^n\\\\n = 277.65`

Number of period(n) =277.65