Question

How long will money in savings take to double at 5% interest compounded annually? Round the answer to the nearest hundredth of a year.

Answer 1

How long will money in savings take to double at 5% interest compounded annually?

A= p(1+r/n) ^nt
2 = (1.05)^t
log 2/log(1.05) = t
t = 14.21 yrs (to the nearest hundredth of a year)