What is the time to double when the initial investment is $1000 and the annual rate is 3.5%
solve for n ...
2000 = 1000(1.035)^n
YOu will have to use logs
1000*1.035^n=2000 Divide with 1000
1.035^n=2
n*log(1.035)=log(2)
Divide with log (1.035)
n=log(2)/log(1.35)
=20.148791684000665883041124279516
OR
1000*1.035^n=2000 Divide with 1000
1.035^n=2
n*ln(1.035)=ln(2)
Divide with ln (1.035)
n=ln(2)/ln(1.35)=20.148791684000665883041124279516
1.035^20.148791684000665883041124279516
=2
2*1000=2000
To find the time it takes for an investment to double, we can use the concept of the Rule of 72. The Rule of 72 states that the approximate time it takes for an investment to double is equal to 72 divided by the annual growth rate.
In this case, the annual growth rate is 3.5%. So, the time it takes for the investment to double can be calculated as:
Time to double = 72 / Annual growth rate
Plugging in the values:
Time to double = 72 / 3.5 = 20.57 years
Therefore, it would take approximately 20.57 years for the investment to double.