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Compounding Interest Question HELP

Calculus
Tutor: None Selected Time limit: 1 Day

$2500 is invested with interest rate of 8.5% annually. Find time required for the money to double if the interest rate if compounded quarterly.

Jul 21st, 2014

Fast way:   72/8.5= roughly 8.5 years 

slow but exact way:

5000=2500(1.0085)^time

2=1.0085^time

log2/log1.085= time

time=8.49 or roughly 8.5 years.


Jul 27th, 2014

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Jul 21st, 2014
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Jul 21st, 2014
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