specifically E, how long will it take to double? In Class Grade #7 r t Names: A

Question

specifically E, how long will it take to double?

In Class Grade #7 r t Names: A urn R of 5% compounded monthly received an income tax refund of $2500 and decided to invest it in a)-Fill in the table for the first four months End of month Interest earned New balance 8 years old an wing tasks m 1092 escription ns b) Find the balance after 1 year c) Find the balance after 2 years. d) Find the APY (annual percentage yield) 6a7 16a .35 500 ) a 500 T0 e) Estimate the doubling time (how long it will take to have $5000).

Explanation / Answer

suppose the money doubles in t months

P(t) = P0 *(1 +r)^t, where r is monthly rate

2 = (1+ r)^t

here r = 0.05

hence

1.05^t = 2

t = 14.2067

hence 14 months 6 days approx

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