posted by .

how to count how long of $5000 at 7% interest compounded for the investment to increase to 10000?
it will be awesome if you can put the way

  • math -

    Use the maximum compounding frequency which is daily. This will minimize the time required to reach $10,000.

    P = Po(1+r)^n.

    P = $10,000.
    Po = $5,000 = Initial deposit.
    r = (7%/360) / 100%=0.0001944.= Monthly % rate expressed as a decimal.
    n = The # of compounding periods.

    5000(1.0001944)^n = 10000
    Divide both sides by 5000:
    (1.0001944)^n = 2
    Take log of both sides:
    n*Log(1.0001944) = Log2
    n = Log2 / Log(1.0001944) = 3565 Compounding periods.

    T = 3565comp. * iyr/360Comp = 9.9 yrs.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    what formulas do i use for this: Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows. A) Annually B) Quarterly C) Monthly D)Daily (365 days) A) 10000*(1+.05)^10 …
  2. algebra- Help fast

    use the compound interest formula A=P(1+r/n)^nt and A=Pe^rt to solve 1-Find the accumulated value of an investment of $5000 at 9% compounded continuously for 6 years. 2-Find for an investment of $700 at 16% compounded quarterly for …
  3. Functions (Math)

    In the formula A=p(1+i)^n, I can not remember how to sub a value for "i" (interest) into the equation. For example, A $1000 investment is made in a trust fund that pays 12%/a compounded monthly. How long will it take the investment …
  4. math

    An amount of $5000 is invested at an interest rate of 7% per year, compounded quarterly. Find the value A(t) of the investment after t years.
  5. math

    find the accumulated value of an investment of $10000 for 5 years at an interest rate of 5.5% if the money is a. compounded semiannually; b. compounded monthly; c. compounded continuously.
  6. precalc

    A $5000 investment earns 7.2% annual interest, and an $8000 investment earns 5.4%, both compounded annually. How long will it take for the smaller investment to catch up to the larger one?
  7. pre calculus

    A sum of $5000 is be invested in a bank. if the annual interest is 10% and compounded monthly, how long will it take for the original investment to double.
  8. Math

    For a savings account paying 2.4% in which interest is compounded MONTHLY. FIND THE Time needed to double the initial investment of 10000 dollars. The answer is 28.9 years but WHY
  9. interest

    Perry has an opportunity to put $12,000 into an investment with an APR of 5.6% compounded annually. How long will it take his investment to double?
  10. Math interest

    How long will it take for an investment of $5000 to double if it is invested at 5% p.a. simple interest?

More Similar Questions