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26 Aug 2011, 23:49
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0% (00:00) correct 100% (03:43) wrong based on 13 sessions

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Well it's a very easy question which I seem to be getting wrong...for most of you this might be like a cherry on the cake hence, would REALLY appreciate if someone can help me with the workings.

A total of 1000$was invested at compounded annual interest rate. At the end of 12 years, the total value will be 4000$. How many years are needed to reach a total of 8000$. Director Joined: 01 Feb 2011 Posts: 755 Re: A total of 1000$ was invested at compounded annual interest rate. At [#permalink]

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27 Aug 2011, 20:14
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Compound Interest A = P(1+r/n)^(nt)

Here n = 1 as its calculated annually.

t = 12

4000 = 1000(1+r)^12

4 = (1+r)^12

=> 4^(1/12) = 1+r equation 1

8000 = 1000(1+r)^n

8 = (1+r)^n

=> 8 = (4^(1/12))^n => 2^3 = 4^(n/12)
=> 2^3 = 2^(n/6)

> 3 = n/6 => n = 18 years
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Joined: 17 May 2009
Posts: 31
Location: United States
GMAT 1: 770 Q51 V44
GPA: 3.62
WE: Corporate Finance (Manufacturing)

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28 Aug 2011, 21:45
Thanks Spidy & Bodleyev..

+1 to both for helping..
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Joined: 27 Aug 2011
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09 Dec 2015, 10:39
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Re: A total of 1000$was invested at compounded annual interest rate. At [#permalink] ### Show Tags 25 Jan 2017, 23:32 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Re: A total of 1000$ was invested at compounded annual interest rate. At   [#permalink] 25 Jan 2017, 23:32
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