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-   -   Time Value of Money (https://www.askmehelpdesk.com/showthread.php?t=189069)

  • Feb 27, 2008, 07:52 PM
    jancrous
    Time Value of Money
    If you deposit money today into an account that pays 6.5 percent interest, how long will it take for you to double your money?
  • Feb 27, 2008, 11:22 PM
    morgaine300
    First, people tend to get confused over the "double the money" part and not know how to put it into an equation. Just make something up, and then double it. Or just $1 and the $2 for the double. It doesn't matter about that part.

    Is that the issue, and does that get you on your way?

    If not, do you know if this is supposed to be compounding or not? And, are you using algebra or not?
  • Feb 27, 2008, 11:56 PM
    ISneezeFunny
    I'm assuming that the money is compounded annually.

    P = principal interest

    like morgaine says, do an example.

    $100

    after 1 year

    $106.50

    after 2 years

    $113.4225

    so on and so forth.

    the actual formula can be found

    Regular Compund Interest Formula

    hint: if you put in P amount, and you want to double it, the end product you want is 2P

    ... 2P or NOT 2P

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