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Approximately how long will it take for 1000 to grow to 5006 at 8 annual interest and compounded 12 times per year?
Wiki User
∙ 15y ago
Use the equation $=$0*(1 + r)xn
where $ is the amount of money, $0 is the initial amount of money, r is the rate, x is the number of times per year the interest is compounded, and n is the number of years the interest is compounded. We are solving for n. To do this we need to use logs.
log(1 + r)($/$0)/x = n
log1.08(5006/1000)/12 = n = 1.744 years.
Wiki User
∙ 15y ago
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Twice
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twoo '
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Four.
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What is an equivalent rate?
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