Question

How long will money in savings take to double at 5% interest compounded annually? Round the answer to the nearest hundredth of a year.

Solve this application using logarithms.

Answer 1

Lets say the initial money = \(\large x\)

Answer 2

after doubling it would be : \(\large 2x\),
and lets say it takes \(\large t\) years to double

Answer 3

use the compound interest formula :

\(\large 2x = x(1+0.05)^t\)

\(\large 2 = (1.05)^t\)

Answer 4

take log both sides and solve \(\large t\), can u ?

Answer 5

I'm comfused