A = P(1+RT)
A (Future) = 2000(2) = 4000
P (Principal) = 2000
R (Rate) = 8% =.08
T (Time) = Unknown
Create the equation:
4000 = 2000(1+.08t)
Distribute the 2000:
4000 = 2000 + 2000(.08t)
Multiply the 2000(.08t):
4000 = 2000 + 160t
Subtract the 2000 from both sides:
2000 = 160t
Divide by 160:
12.5
Answer:
It will take 12.5 years (12 years and 6 months) to double the 2000 to double.