Problema Solution
How long (in years and months)will it take for an investment to double at 5% compounded monthly? Round up to the nearest month
Answer provided by our tutors
2 = (1+0.05/12)^(12t)
ln(2) / ln(1+0.05/12) = 12t
t = (log(2) / log(1+0.05/12) ) / 12 = 13.8918 years
Rounding up, this is 13 years, 11 months.