Compound Interest

Pens8675309

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How many years are necessary to double money at 3% interest, compounded annually ? (Round you answer to the nearest tenth, if necessary)
 

skeeter

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Dec 15, 2005
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\(\displaystyle A = A_0(1 + r)^t\)

\(\displaystyle r = 0.03\)

you want to double \(\displaystyle A_0\)

solve for \(\displaystyle t\)
 

Subhotosh Khan

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\(\displaystyle A = A_0(1 + r)^t\)

\(\displaystyle r = 0.03\)

you want to double \(\displaystyle A_0\)

solve for \(\displaystyle t\)
Very approximate answer (following rule of 72) → 24 years
 
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