Now let's assume we invest $500 at 6% compounded monthly, and want to know how long until the account balance doubles. Enter A=1000, P=500, R=0.06 and N=12. Then move the cursor to the line for T. Enter a guess for T, say 5. Do not press ENTER! Leave the cursor on this line and press ALPHA SOLVE.
The value that appears next to T after doing this is the solution to the equation. Therefore, the time required for the principle to double is approximately 11.6 years. |
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