Question

How long would it take to double your money in an account paying 4% compounded quarterly?

Ignoring leap uears, the investment will be doubled in _____ years and _____ days. (Round to the nearest whole number as needed.)

I'm having a problem, all the explanations I've received give me a response of 17.42 years; however, my book says 17 years and 151 days - how do I get the 151 days???? im so confused. can the exact answer be obtained in Excel (17 years & 151 days)? what is the correct formula for this format answer? Help!

Answer 1

I have answered the question below

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Answer:

This n means 69.66 quartes. A year has 4 quarters Hence

=> 69.66/4 = 17.415 years

A year has 365 days

0.415 years meaning => 0.415*365 = 151.47 days

Hence a total of 17 + 151.47 = 17 years 151 days

Note: This is a simple calculation. Doing it in excel requires complex VBA stuff which is not advisable