I understand this maybe a question for https://quant.stackexchange.com/; but I believe the math is simple enough to understand.
In How many months at an interest rate of 1% per month does money have to be invested before it will double its value?
The answer is 70 Months
I tried the following equation:
Interest,I = Present Value,P * Interest Rate,i * Time Relative to Year,t
To double the money its supposed to be equal to the present value.
Present Value,P = Present Value,P * Interest Rate,i * Time Relative to Year,t
therefore
1 = 1*(0.01)*x/12; Simply calculate for X.
I get 1200. Am I doing anything wrong?
You calculations are wrong. The correct growth capital formula is $(1+r)^n$ where $r=0.01$ and $n$ is unknown. So $(1+0.01)^n=2$ and $n*\log(1.01)=\log(2)$. Thus we have $n=\log(2)/\log(1.01)\approx 69.66\approx 70$