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lyudmila [28]
3 years ago
5

When working with compounded interest does doubling the time of an investment double the amount of interest earned

Mathematics
1 answer:
Olin [163]3 years ago
3 0

the equation for compound interest is

A=P(1+r)^t

we will see if it doubles or not

if t=1, we get A=P(1+r)

if t=2, we get A=P(1+r)^2


2(P(1+r))=P(1+r)^2 ?

2(1+r)=(1+r)^2 ?

2+r=r^2+2r+1

etc

when r=-1.618 or 0.618, then it doubles, but not when r is different things

not always

so no, it does not always double the amount of interest earned

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