If you invest $1000 for one year at an interest rate of 12%, the return is $1120

Question

If you invest $1000 for one year at an interest rate of 12%, the return is $1120 at the end of the year. But if interest is compounded at the rate of 1% monthly (i.e., 1/12 of the annual rate), you get slightly more interest because it is compounded. How long does it take for the amount to double with a compound interest? Use fprintf to print the month and the balance at the end of each month until the amount is doubled. Present the results in a table. The table columnsshould have a header. If you invest $1000 for one year at an interest rate of 12%, the return is $1120 at the end of the year. But if interest is compounded at the rate of 1% monthly (i.e., 1/12 of the annual rate), you get slightly more interest because it is compounded. How long does it take for the amount to double with a compound interest? Use fprintf to print the month and the balance at the end of each month until the amount is doubled. Present the results in a table. The table columnsshould have a header.

Explanation / Answer

The answer should be $1126.83. Evaluate the formula for this result separately as a check: 1000

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