If you put $100 in a bank account that pays you 10% interest, compounded annually, how many years would it take you to attain a balance of more than $200, assuming no withdrawals were made?

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Business

Jasmine Wang

22 April, 15:58

If you put $100 in a bank account that pays you 10% interest, compounded annually, how many years would it take you to attain a balance of more than $200, assuming no withdrawals were made?

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Leonidas Webb · Answer 1

Total amount = P (1 + r/100) ^n

200 < 100 (1 + 10/100) ^n

200 < 110^n

log110^n > log200

n x log110 > log200

n > log200/log110

n > 1.13 (to 3 significant figures)

It would take more than 1.13 years for me to attain a balance of more than $200, assuming no withdrawals were made.