70/i=T

Discussion in 'CT1' started by deepakraomore, May 15, 2012.

  1. deepakraomore

    deepakraomore Member

    Hello,
    Somewhere in question paper of, The sum is as.
    70 devided by interest rate gives the term in which money gets double.

    Can anybody proves it mathematically?
     
  2. Calum

    Calum Member

    You're solving for when (1+i)^t = 2 - the time when the compounding doubles the initial sum.

    Solve for t and recall that ln(1+x) ~= x for small x.
     

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