If you deposit money today in an account that pays 5.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.

Answer: it take 13.09 years to double your money.

Step-by-step explanation:

Assuming the interest was compounded annually, we would apply the formula for determining compound interest which is expressed as

A = P (1+r/n) ^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = P

A = 2P

r = 5.5% = 5.5/100 = 0.055

n = 1 because it was compounded once in a year.

Therefore,.

2P = P (1 + 0.055/1) ^1 * t

2P = P (1.055) ^t

2P/P = 1.055^t

2 = 1.055^t

Taking log of both side, it becomes

Log2 = tlog1.055.

0.301 = 0.023t

t = 0.301/0.023

t = 13.09 years