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?
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.
