Question

I want to quadruple my money in 10 years. If I earn 4.427% each quarter, how many years will it take for me to achieve that objective?

Answer 1

let the Present Value be X

Future Value be 4X

Future Value = Present Value * (1+r)^n

r = 0.04427

4X = X * (1+0.04427)^n

(1+0.04427)^n = 4X / X

(1+0.04427)^n = 4

Logging both sides

n * log 1.04427 = log 4

n * 0.01881280168 = 0.60205999132

n = 0.60205999132 / 0.01881280168

n = 32 quarters

No of years = 32 Quarters / 4 = 8 years