Question

You invest £500 in a bank account that pays 6% interest per year. How many years will it have to be left in the bank for it to double in value?

Answer 1

hello my piegieon frand

Answer 2

Hahahaha hey dere

Answer 3

"Double in value" implies that 500 pounds becomes 1000 pounds.

Then you have 1000 pounds = (500 pounds) ( 1 + 0.06)^t.

Your job is to solve this for time, t. Try it. Ask questions if you feel stuck.

Answer 4

So i find 6% of 500 and then keep doubling until it reaches 1000?

Answer 5

I hadn't thought of doing that. The formula for compound interest paid once yearly is \[A=P(1+r)^t\] and I would very much prefer you use that formula. Later, if you'd like to check your work, you could try doing it in the way you propose.

So, again: 1000 pounds = 500 pounds (1+0.06)^t. Find t.

Answer 6

16 years?

Answer 7

I'd like very much to see how you obtained your answer. did you use logarithms? In my opinion that wuld be the best approach.