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Vsevolod [243]
3 years ago
7

How long will it take for the balance of an account to double if the savings account earns 0.75% annual interest compounded mont

hly?
Hint: Set up the problem using the formula: A=P(1+r/n )^nt.
Mathematics
1 answer:
spin [16.1K]3 years ago
4 0
Let the amount deposited (principal) be x, then the amount after the required time = 2x.
A = P(1 + r/n)^nt: where A is the future value = 2x, P is the principal = x, r is the rate = 0.75%, n is the number of accumulation in a year = 12, t is the number of years.

2x = x(1 + 0.0075/12)^12t
2 = (1 + 0.000625)^12t
log 2 = 12t log (1.000625)
log 2 / log (1.000625) = 12t
1109.38 = 12t
t = 92 years
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