Engineering Board Exam Reviewer · Compound Interest · hard

Find the number of years for P5,000 to double at 8% compounded annually.

  1. ≈9.0 years
  2. ≈8.0 years
  3. ≈10.0 years
  4. ≈7.5 years

Answer

A. ≈9.0 years

Solution

2=(1.08)n n= 2/ 1.08 9.0 years.

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  1. Find the effective interest rate equivalent to 10% compounded annually.
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