Question
How many years will it take for $2000 to double at a simple interest rate of 8%? Explain how you found your answer.
Answers
oobleck
just find t such that 1.08^t = 2
The starting amount does not matter.
Just FYI, read up on "The Rule of 72."
The starting amount does not matter.
Just FYI, read up on "The Rule of 72."
Reiny
It said, at a simple interest of 8%.
So you are generating $2000 interest in order to double your investment
I = PRT
2000 = 2000(.08)t
t = 12.5
Notice that this differs quite a bit from the answer oobleck obtains using
compound interest.
The "rule of 72" applies to compound interest.
So you are generating $2000 interest in order to double your investment
I = PRT
2000 = 2000(.08)t
t = 12.5
Notice that this differs quite a bit from the answer oobleck obtains using
compound interest.
The "rule of 72" applies to compound interest.
oobleck
sorry. my bad. Way to watch, Reiny.