A few days ago
Need help, please show work?
A woman deposits $50,000 in a savings account with 4% continuously compounded interest. How many years must she wait until the balance has doubled?
Top 5 Answers
A few days ago
Favorite Answer
100,000 = (50,000) (1.04)^t double the amount
(1.04)^t = 2 divide by 50,000
t log 1.04 = log 2 logs to clear exponent
t = log 2/log 1.04
t = 17.68 yrs ~ 17 yrs and 8 mos
0
A few days ago
Actually you would repetitively multiply by 1.04 until the result equals or exceeds 100,000, and the answer would be the number of times you hit “X”.
As a matter of interest, there is something called “The rule of Seven” which says that at 10% money doubles in 7 years, or in 10 years at 7%.
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A few days ago
Future Value = FV and Present Value =PV
FV = PV (1 + r)^n
100,000 = 50,000 (1 + 0.04)^n
Plug and chug. Good luck to ya!
Use rule of 72
72/4= 18 years to double see the link as well!
0
A few days ago
About 17 and a half years, you should have $100,000.
To figure compound interest, google “compound interest calculator”.
0
A few days ago
50,000 * 0.04 = how much you earn in a year
then figure it out from there
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