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neonofarm [45]
2 years ago
10

Suppose $500 is invested at 6% annual interest compounded twice a year. When will the investment be worth $1000.

Mathematics
1 answer:
Nataly_w [17]2 years ago
7 0

Answer:

Step-by-step explanation:

V=P(1+r/c)^{(ct)}\\ \\ V=P(1+.06/2)^{(2t)}\\ \\ 1000=500(1.03)^{(2t)}\\ \\ (1.03)^{2t}=2\\ \\ 2t=ln2/(ln1.03)\\ \\ t=ln2/(2ln(1.03))\\ \\ t\approx 11.7 years

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