Suppose, you invest $10,000 today in a fund that pays 5% annual interest compounded quarterly. How...

Suppose, you invest $10,000 today in a fund that pays 5% annual interest compounded quarterly. How many years will it take for the fund to double the investment?

Expert Solution

Ans 13.95 years

FV =	Future Value
PV =	Present Value
r =	rate of interest
n=	no of period


FV/ PV =	(1 + r )^n
20000 / 10000 =	(1 + 5%/4)^n
2 =	(1 + 5%/4)^n
2 =	1.0125^n
n =	13.95 years

jeff jeffy answered 2 years ago

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