If the investment has grown by 50%, then the amount the investment is worth is where is the principal. Compounded annually at an interest rate of , we would write:
Now, divide through by to get:
Now you can use logs to solve for .
I have this log question,
How long will it take an intiatial investment to grow by 50 % in each of the following cases:
A) 5% per year, i wont write b, c because they are more or less the same.
my problem is i dont know how to set up the problem this is what i see
Initial amount= ?
growth rate= 1.05 (1+.5)
I do not know how to incorporate the rate at which it compounds nor do i know how to add the 5%
Can i just assume A?.