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Algorithms (Example)

You put $10,000 into a bank account that earns 5% interest per year. How many years does it take for the account balance to be double the original?

• Step 1: Start with the table
  

  After Year	Balance
  0	$10,000

• Step 2: Repeat steps 2a-2c while balance < $20,000
  • Step 2a. Add a new row to the table
  • Step 2b. In column 1 of the new row, put one more than the preceding year's value
  • Step 2c. In column 2, place the value of the preceding balance value, multiplied by 1.05.
    

• Step 3: Report the last number in the year column as the number of years required to double the investment

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