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$500 into a new

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by sanju09 » Tue Jul 06, 2010 5:54 am
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
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by rsvaishu » Tue Jul 06, 2010 6:14 am
sanju09 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
Ans: E- 21 years

1000 = 500(1+.05)^x
x= 21
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