The first part of this question, I know. If $5000 is deposited today, at 6% comp
ID: 3093460 • Letter: T
Question
The first part of this question, I know. If $5000 is deposited today, at 6% compoundedsemi-annually, how much money will this account contain after 5years? [Assume no further deposits or withdrawls have been madeduring the five-year period.]. 5 years = $2693.08. It's THIS part I don't know how to work. How long will it take for the account to double itself? Do NOT use the rule of 72. The first part of this question, I know. If $5000 is deposited today, at 6% compoundedsemi-annually, how much money will this account contain after 5years? [Assume no further deposits or withdrawls have been madeduring the five-year period.]. 5 years = $2693.08. It's THIS part I don't know how to work. How long will it take for the account to double itself? Do NOT use the rule of 72.Explanation / Answer
You initial deposited $5000dollars so you are trying to find out how long it will take to get$10000 dollars. S = P[1 + (r/m)]^(mt) S = 10000 P = 5000 r = 0.06 m = 2 t = ? = x 10000 = 5000[1 +(0.06/2)]^(2x) 10000/5000 =(1.03)^2x 2= (1.03)^2x log2 =2x(log1.03) (log2)/(log1.03) =2x 23.45 = 2x 11.72 years = xRelated Questions
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