Question

At his son's birth, a man invested $2,000 in savings at 6% for his son's college education. Approximately how long will it take for the man’s investment to double?

Answer 1

How often is it being compounded?

Answer 2

This was a two-part question. The first question was At his son's birth, a man invested $2,000 in savings at 6% for his son's college education. Approximately how much, to the nearest dollar, will be available in 19 years?
Answer= $6051.20

I'm not sure if that answered your question or not, I'm really dumb when it comes to stuff like this, sorry!

Answer 3

I would assume continuous compounding and use
\[P= P_0 \ e^{r t}\]

Answer 4

if you want twice as much you would want 2 P0
\[ 2 P_0 = P_0 \ e^{0.06t} \]
or after dividing both sides by P0 (the starting amount)
\[ 2 = e^{0.06t} \]
"take the natural log of both sides" :
\[ \ln 2 = 0.06 t \]
now divide both sides by 0.06
\[ \frac{\ln 2 }{0.06} = t \]
you need a calculator to get a number

Answer 5

I got approx. 11.6

Answer 6

yes. How did you get the answer for after 19 years ?

Answer 7

2,000(1.06)^19

Answer 8

ok, then you are assuming compounding yearly

if we use that same compounding, then the time it takes to double is
2 = (1.06)^t

take the natural log of both sides:
ln 2 = t * ln(1.06)
and
t = (ln 2) / (ln 1.06)
it's a bit longer than the first answer.
I would round to 12 years (unless they want a more accurate answer)

Answer 9

Thank you so much! I really appreciate it :)