Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 9 - Section 9.3 - Logarithmic Functions and Models - Exercises - Page 657: 45

Answer

$13$ years.

Work Step by Step

Compounding interest $n$ times a year is modeled by $A=P(1+r/n)^{nt}$ Given $A=2P, r=0.055, n=2$, we find $t$ $2P=P(1+0.055/2)^{2t}$ $2=(1+0.055/2)^{2t}$ $\log 2=2t\cdot\log(1+0.055/2)$ $ t=\displaystyle \frac{\log 2}{2\log(1+0.055/2)}\approx~12.77517$ or, after about $13$ years.
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