PLEASE HELP!
You deposit $400 in an account that pays 5% annual interest. How long will it take for the balance to double for each frequency of compounding?

Respuesta :

It will take nearly 14 years for the balance to be double .

In compound interest, the amount is given as below,

                     [tex]A=P(1+\frac{r}{100} )^{n}[/tex]

where r is rate of interest and n is number of years.

Given that,  [tex]A=800,P=400,r=5[/tex]

Substitute values in above formula.

                [tex]800=400(1+\frac{5}{100} )^{n} \\\\(\frac{21}{20} )^{n} =2\\\\n=14.2 years[/tex]

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