Question

how long would it take for P dollars to double if it is invested at 20%?​

Answer 1

Answer:

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Answer 2

To calculate the time it takes for an investment to double, we can use the concept of the "Rule of 70" or "Rule of 72" which states that you can divide the number 70 or 72 by the annual interest rate to get the approximate number of years it will take for the investment to double.

Using the rule of 70, it would take ln(2) / ln(1+r) years for an investment to double, where r is the interest rate.

So, if we use this formula, taking ln(2) / ln(1+0.2) = 69.3 / 69.099 = 3.034 years.

In terms of natural logarithms, it would be 3ln(2)