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How long it will take 2000$ to double if it is invested at 6% interest compounded semi annually

Sagot :

Answer:

Number of year = 11.725 year (Approx.)

Step-by-step explanation:

Given:

Amount invested = $200

Interest rate = 6% (compounded semi annually)

Future value = 2 x Amount invested

Find:

Number of year

Commutation:

Future value = 2 x Amount invested

Future value = 2 x 200

Future value = $400

Number of year (Semi-annual) = 2n

Interest rate (Semi-annual) = 6% / 2 = 3%

So.

A = P[1+r]ⁿ

400 = 200[1+3%]²ⁿ

2 = [1.03]²ⁿ

n = 11.725 year

Number of year = 11.725 year (Approx.)

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