Question

4 ptsSuppose that $2060 is deposited into an account where the interest is compounded annually. This situationcan be modeled by the function.P (t) = 2060(1.018)where P(t) represent the value (in dollars) of the account at t years afterdepositing the $2060.In how many years will the money in the account double? {your final answer just number without decimal)

Answer 1

Initial amount=$2060

Function:

$P(t)=2060*(1.018)^t$

Where p(t) is the final value. In this case p(t)=2060*2.

$\begin{gathered} 2060*2=2060(1.018)^t \\ \end{gathered}$

Solving for t:

$\begin{gathered} \frac{2060}{2060}*2=1.018^t \\ 2=1.018^t \\ Log_{1.018}(2)=t \\ t=38.85\approx39 \end{gathered}$

Answer: The years to double the money are 39.