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Suppose you deposit 2500 in a savings account that pays you 5% interest per year A. How many years will it take for your money to double ? B. How many years will it take for your account to reach 8,000?

Respuesta :

retirEEd

Answer:

A)  14.2 years     B)  23.84 years

Step-by-step explanation:

 A = P( 1 + r/n)^nt      P = 2500  A = 2P = 5000   r = 0.05  n = 1   FInd t

                                                   A = 8000     Find t

I used a financial calculator to find this

t = 14.2 years

 

A = P( 1 + r)^t

A/P = ( 1 + r)^t

5000/2500 = (1.05)^t

 2 = 1.05^t        I don't remember how to solve this for t

8000/2500 = 1.05^t         t = 23.84      according to the fin calculator