It takes 11.55 years for money to double if invested at 6% compound interest.
What is compound interest?
- The interest that is calculated using both the principal and the interest that has accrued during the previous period is called compound interest.
- It differs from simple interest in that the principal is not taken into account when determining the interest for the subsequent period with simple interest.
- Compound interest is commonly abbreviated C.I. in mathematics.
Calculating the answer exactly: P⁰°⁰⁶ⁿ=A .
We don’t know the initial value of the principal but we do know that the accumulated value is double (twice) the principal.
P⁰°⁰⁶ⁿ = 2P
We divide both sides by P
e⁰°⁰⁶ⁿ = 2
Using natural logarithm:
0.06 n = ln(2)
n = ln(2)/0.06
n = 11.55 years
Hence, It takes 11.55 years for money to double if invested at 6% compound interest.
To know more about compound interest check the below link:
brainly.com/question/24274034
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