Savings accounts earn interest compounded monthly. The formula used to determine the account balance at any time t is
A= P(1+)". where A is the account balance, P is the principal (amount invested), r is the annual interest rate (expressect
as a decimal), and n is the number of times Interest is calculated.
How long will it take for the balance of an account to double if the savings account earns 0.9% annual interest compounded
monthly?
Round to the nearest tenth of a year.
It will take approximately
account to double.
Hint: Pick any starting amount that you want and
then double it. this will be your P and A values.
Use this to solve for t. n=12 because "monthly"
years for the balance in the
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4/11