Answer:
Step-by-step explanation:
Using FV = PV(1 + r)^n where FV = future value, PV = present value, r = interest rate per period, and n = # of periods
1/PV (FV) = (PV(1 + r^n)1/PV divide by PV
ln(FV/PV) = ln(1 + r^n) convert to natural log function
ln(FV/PV) = n[ln(1 + r)] by simplifying
n = ln(FV/PV) / ln(1 + r) solve for n
n = ln(2/1) / ln(1 + .08) solve for n, letting FV + 2, PV = 1 and rate = 8% or .08 compound annually
n = 9
n = ln(2/1) / ln(1 + .08/12) solve for n, letting FV + 2, PV = 1 and rate = .08/12 compound monthly
n = 104 months or 8.69 years
n = ln(2/1) / ln(1 + .08/365) solve for n, letting FV + 2, PV = 1 & rate = .08/365 compound daily
n = 3163 days or 8.67 years
Alternatively
A = P e ^(rt)
Given that r = 8%
= 8/100
= 0.08
2 = e^(0.08t)
ln(2)/0.08 = t
0.6931/0.08 = t
t= 8.664yrs
t = 8.67yrs
Which ever approach you choose to use,you will still arrive at the same answer.
