Question

How many years will it take for an initial investment of $5,000 to double the amount if it is invested at 6.5 percent compounded annually?

Answer 1

11 years is the required answer.

Step-by-step explanation:

`A=P(1+(r)/(n))^(n\cdot t)` is the formula for compound interest.

Where, r is the interest rate in decimals and n is the number of times interest is compounded anually. Putting the values, we get:

`2* 5000=5000\left(1+(0.065)/(1)\right)^(1* t)\\\\\Rightarrow t=11\:years`

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