# 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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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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