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How long would it take to double 2000 at 6 percent interest rate compounded annually?
Wiki User
∙ 11y ago
12 years I think
Wiki User
∙ 11y ago
Using the compound interest formula A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years, we can solve for t when A = 4000, P = 2000, r = 0.06, and n = 1. Plugging these values in, we get:
4000 = 2000(1 + 0.06/1)^(1t) 2 = (1 + 0.06/1)^(1t) 2 = (1.06)^t
Taking the logarithm of both sides, we can solve for t: log 2 = t log 1.06 t = log 2 / log 1.06
Using a calculator, we find that t is approximately 11.90. Therefore, it would take approximately 12 years to double the initial amount of 2000 at a 6 percent interest rate compounded annually.
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