Solve the problem.
-Assume that a savings account earns interest at the rate of 2% compounded monthly. If this account contains $1000 now, how many months will it take for this amount to double if no withdrawals are made?
A) 417 months
B) 12 months
C) 450 months
D) 408 months

Question

Quizplus · Accepted Answer

The amount of money in the account after t months is given by the formula A = 1000(1 + 0.02/12)^12t. We want to find t such that A = 2000. Solving for t, we get t = 417.

Solve the Problem. -Assume That a Savings Account Earns Interest at the Rate