Help me figure out this problem!!

Mathematics

1 answer:

kodGreya [7K]4 years ago

4 0

Answer:

9.9 years

Step-by-step explanation:

There are two ways to go at this. For this problem, they give the same answer.

<u>Quick way</u>:

The interest rate is 7.25%. Using the "rule of 72" the doubling time in years is ...

doubling time in years = 72/(interest rate %)

72/7.25 ≈ 9.9 . . . years

<u>Exact Calculation</u>:

The initial investment is 750, so it will be double when A(t) = 1500. Filling in the value and solving for t, you have ...

1500 = 750(1.0725^t)

2 = 1.0725^t . . . . . . divide by 750

log(2) = t·log(1.0725) . . . . . take logarithms

Divide by the coefficient of t

t = log(2)/log(1.0725) ≈ 9.9 . . . . years

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Hi there!

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