contestada

Denise put $95 into a cd that pays 5.2% interest compounded monthly. according to the rule of 72, approximately how long will it take for her money to double? round your answer to the nearest tenth.

Respuesta :

Aliwohaish12
72/5.2=13.8years ......................

Answer:

It will take 13.67 months for her money to double

Step-by-step explanation:

We are given

Denise put $95 a cd

so, P=95

that pays 5.2% interest compounded monthly

so, r=0.052

We are given

Her money gets doubled

so, A=2*95=190

now, we can use formula

[tex]A=P(1+r)^t[/tex]

where

t is time in months

we can plug values

[tex]190=95(1+0.052)^t[/tex]

[tex]2=(1.052)^t[/tex]

now, we can solve for t

[tex]\ln \left(2\right)=\ln \left(1.052^t\right)[/tex]

[tex]t=\frac{\ln \left(2\right)}{\ln \left(1.052\right)}[/tex]

[tex]t=13.67[/tex]