Alison deposits $500 into a new savings account that earns 5 percent interest compounded annually. If Alison makes no additional deposits or withdrawals, how many years will it take for the amount in the account to double?
(A) 14
(B) 15
(C) 19
(D) 20
(E) 21
$500 into a new
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Ans: E- 21 yearssanju09 wrote:Alison deposits $500 into a new savings account that earns 5 percent interest compounded annually. If Alison makes no additional deposits or withdrawals, how many years will it take for the amount in the account to double?
(A) 14
(B) 15
(C) 19
(D) 20
(E) 21
1000 = 500(1+.05)^x
x= 21