posted by .

Suppose you pay $1000 into a savings account that pays 2% per year, compounded annually. How many years will would it take for the money in the account to double, to $2000? use "successive approximation."

  • finance -

    P = Po(1+r)^n.

    P = 1000(1.02)^n = 2000
    1.02^n = 2
    n*Log 1.02 = Log 2
    n = Log 2/Log 1.02 = 35 Compounding periods.

    35Comp / 1Comp/yr = 35 Yrs. To double.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Calc

    A person deposits money into a retirement account, which pays 7% interest compounded continuously, at a rate of $1000 per year for 20 years. Calculate: a. The balance of the account at the end of 20 years b. the amount of money actually …
  2. Precalculus

    NEED HELP ASAP PLEASE!! A savings account starts with $600 and pays 5% interest per year, compounded four times per year. a) A function that models the amount in dollars in the bank account after m years is A(m)=____________?
  3. Math

    $100 is deposited in a savings account that pays 4% interest compounded annually. A) how much is in the account after 5 years?
  4. Finance

    How much money must you pay into an account at the beginning of each of 11 years in order to have $5,000 at the end of the 11th year?
  5. Math

    Suppose you invest your money into an account that pays 4.0% per year compounded quarterly. How long (in years) will it take for your money to triple?
  6. differential equation

    If P(t) is the amount of dollars in a savings bank account that pays a yearly interest rate of r% compounded continuously ,then dP/dt=(r/100)(P) , t in years . Assume the interest is 5% annually ,P(0)=$1000 ,and no monies are withdrawn …
  7. introduction to finance-16

    if you put $4000 in savings account that pays interest rate of 4%, compounded annually, how much will you have in 5 years?
  8. Math

    (a) Themba wants to deposit a sum of money into a savings account so that he will have R30 000 in 3 years time for an overseas holiday how much money must he deposit into the account if the interest paid on the savings is 8,5% p.a …
  9. math

    I keep getting the problems wrong? Please help James deposits $6000 into a savings account which pays 1% per annum. If the account compounds monthly, find the amount in the account after 10 years. (ive gotten 6631 but that's wrong)
  10. math

    Riley invests $100 in the year 2000. The account is compounded annually. The account earns 3% interest for a period of 30 years. After 30 years, how much money will be in the account?

More Similar Questions