Question

Determine how long it would take an investment of $10000 to double in value is it were compounded annually at 9.75%

Answer 1

would it just be 812.5 per month?

Answer 2

Just use the formula

Answer 3

what formula? i wasnt given one :S

Answer 4

Formula for compound interest

Answer 5

M = P( 1 + i )^n?

Answer 6

Yeah, but, we usually use A instead of M

Answer 7

oh ok! Thanks a bunch hero

Answer 8

Actually, the full formula is

\(A = P(1 + \frac{r}{n})^{nt}\)

To figure out when it doubles, use:

\(2A = P(1 + \frac{r}{n})^{nt}\)