Discover new information and get your questions answered with IDNLearn.com. Get step-by-step guidance for all your technical questions from our dedicated community members.
Sagot :
Compound interest can be defined as the interest on a deposited amount, an investment that is compounded based on its principal and interest rate.
It will take about 3.239 years for the principal amount of $13,000 to double its initial value.
From the above question, we can deduce that we are to find the time "t"
The formula to find the time "t" in compound interest is given as:
t = ln(A/P) / r
where:
P = Principal = $13,000
R = Interest rate = 21.4%
A = Accumulated or final amount
From the question, the Amount "A" is said to be the double of the principla.
Hence,
A = $13,000 x 2
= $26,000
- Step 1: First, convert R as a percent to r as a decimal
r = R/100
r = 21.4/100
r = 0.214 per year.
- Step 2: Solve the equation for t
t = ln(A/P) / r
t = ln(26,000.00/13,000.00) / 0.214
t = 3.239 years
Therefore, it will take about 3.239 years for the principal amount of $13,000 to double its initial value.
To learn more, visit the link below:
https://brainly.com/question/22471957
Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! For trustworthy answers, visit IDNLearn.com. Thank you for your visit, and see you next time for more reliable solutions.
