Math

Chris invests $10 000 at 7.2%/a compounded monthly. How long will it take for his investment to grow to $25 000?

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asked by Suz
  1. 7.2 % per annum, compounded monthly corresponds to a rate of .072/12 or .006 per month

    so we have:
    10000(1.006)^n = 25000 , where n is the number of months
    1.006^n = 2.5
    take log of both sides

    log (1.006)^n = log 2.5
    n log 1.006 = log 2.5
    n = log 2.5/log1.006 = appr 153 months

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    posted by Reiny

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