Alison deposits 500 dollars 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?

Question

Mathematics

Zoie Snyder

2 March, 15:31

Alison deposits 500 dollars 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?

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Izabella Oconnell · Answer 1

First of all find 5% of 500, which is 25. Now do 500/25, which is 20. So your answer is that it will take 40 years until the amount doubles in the account.