The question in my book is so vague I don't understand it ??? I don't even know what formula to us for this is have a list of formulas too.

How long will it take money to double if it is invested at 7.5% compounded daily? 7.5% compounded annually?

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- December 6th 2012, 10:41 PMossie4mathematics in finance
The question in my book is so vague I don't understand it ??? I don't even know what formula to us for this is have a list of formulas too.

How long will it take money to double if it is invested at 7.5% compounded daily? 7.5% compounded annually? - December 7th 2012, 02:28 AMearbothRe: mathematics in finance
1. The amount of money at the time t is:

2. Let A(0) = 1 $. Then A(t) = 2 $

If the invested money is compounded daily then the percentage will be . Thus you have to solve for t:

I've got

3. If the invested money is compounded annually then the percentage will be 0.075. Thus you have to solve for t:

I've got

4. Now you have to write a comment!