Use Exponential Models in Applications Elise invests $4500 in an account that compounds interest monthly and earns 6%. How long will it take for her money to double?

Jaya Legge

Jaya Legge

Answered question

2020-11-07

Use Exponential Models in Applications
Elise invests $4500 in an account that compounds interest monthly and earns 6%. How long will it take for her money to double?

Answer & Explanation

Roosevelt Houghton

Roosevelt Houghton

Skilled2020-11-08Added 106 answers

Given:
P=$4500
R=6%
A=$9000
n=?
Since we are compounding monthly then we apply this formula
A=P(1+R12x100)12n
9000=4500(1+R12x100)12n
2=(1+.005)12n2=1.00512n
Taking log on both side
12nlog1.005=log2
12nx.0021=0.301
n=0.3010.026
n=11.57 years

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