At an annual interest rate of 7%, how many years does it take to quadruple your...

At an annual interest rate of 7%, how many years does it take to quadruple your money?

Expert Solution

PV = Present Value = $1

FV = Future Value = $4

r = annual interest rate = 7%

Let n = number of years

FV = PV * (1+r)^n

$4 = $1 * (1+7%)^n

(1.07)^n = 4

n = log(4) / log(1.07)

n = 0.602059991 / 0.0293837777

n = 20.4895367

Therefore, it will take 20.49 years to quadraple the money

jeff jeffy answered 2 years ago

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