10,000 is invested at 5.8% a year compounded continuously. How long would it tak

1. 42
jazmencalieposted 8 years ago

10,000 is invested at 5.8% a year compounded continuously. How long would it take to double it?

2. 0
Phoebe Pikeposted 8 years ago

Year 1
10,000x.058= 580

10,000+580= 10,580
Year 2
10,580x.058= 613.64

10,580+613.64= 11,193.64
Year 3
11,193.64x.058= 649.23112 (but since it's money, round) 649.23

11,193.64+649.23= 11,842.87
Year 4
11,842.87x.058=686.89

11,842.87+686.89= 12,529.76
Year 5
12,529.76x.058= 726.73

12,529.76+726.73= 13,256.49
Year 6
13,256.49x.058= 768.88

13,256.49+768.88= 14,025.37
Year 7
14,025.37x.058= 813.47

14,025.37+813.47= 14,838.84
Year 8
14,838.84x.058= 860.65

14,838.84+860.65= 15,699.49
Year 9
15,699.49x.058= 910.57

15,699.49+910.57= 16,610.06
Year 10
16,610.06x.058= 963.38

16,610.06+963.38= 17,573.44
Year 11
17,573.44x.058= 1,019.26

17,573.44+1,019.26= 18,592.70
Year 12
18,592.70x.058= 1,078.38

18,592.70+1078.38= 19,671.08
Year 13
19,671.08x.058= 1,140.92

19,671.08+1,140.92= 20,812

3. 54
dabeanerposted 8 years ago

For an APPROXIMATION, divide 72 by 5.8.  That is the "rule of 72".
The Rule of 72.   How long to double your principal at various interest rates?   How long to double your money at various rates of return?   How long for the government to cut your purchasing power in half at various rates of inflation?
http://www.bean-d.com/finance/rule-of-72.php