1. How long does money in a savings account take to double itself at 4% interest compounded annually? [use the formula A=P(1+i)^n]. Round answer to nearest tenth.

Question

anonymous · Answer

You need to find n so that
$$
P(1+i)^ n = 2 P\
1.04^n= 2\
$$
We cancelled by P.
Can you finish it?

anonymous · Answer

Im lost. i got 50.99346 and my answer choices are 1.9  3.1  5.7  17.7  23.2

anonymous · Answer

Sorry, this is the correct solution for n
$$
n \ln (1.04) =\ln(2)\
n = \frac {\ln(2)}{\ln (1.04)}
$$

anonymous · Answer

$$n =\frac {0.693147}{0.0392207}=17.673
$$
The answer 17.7