CCGPS AA 4.3.1 Example 2
- Walch Education
Roger recently inherited some money. He plans to invest his inheritance in a mutual fund earning 8.5% interest compounded annually. How long will it take for him to double his inheritance? Round your final calculation to the nearest tenth. Use the compound interest formula, , where represents the fund’s balance, is the principal amount, is the annual interest rate expressed as a decimal, is the number of times the balance is compounded each year, and is the time in years.
- Identify the known quantities.
- Determine how long it will take for Roger to double his inheritance.