How to the missing value?

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1 Answer
Oct 14, 2017

log(2)/log(1.087)~~8.309log(2)log(1.087)8.309 years

Explanation:

Initial Investment = 19000/2=9500190002=9500

let yy be the number of years it will take to double

9500 * 1.087^y=1900095001.087y=19000

=>1.087^y=21.087y=2

logarithmic rules state log(a^x)=x*log(a)log(ax)=xlog(a)

=>log(1.087^y)=log(19000)log(1.087y)=log(19000)

=>y*log(1.087)=log(19000)ylog(1.087)=log(19000)

=>x=log(2)/log(1.087)~~8.309x=log(2)log(1.087)8.309 years