Asked by eliza

How long will it take an investment that pays 5% compunded annually to double in value?

Answers

Answered by drwls
Solve the equation (1.05)^y = 2

y will be the number of years.

It can be solved with logs and a calculator.

y = log2/log1.05 = 14.2

The base of the log does not matter as long as it is the same for both.
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