How long will it take $200 to double if it earns the following rates? Compounding occurs once a year. Round your answers to two decimal places.
3%.
year(s)
9%.
year(s)
21%.
year(s)
100%.
year(s)
| FV = | Future Value | |
| PV = | Present Value | |
| r = | rate of interest | |
| n= | no of period | |
| a) | FV/ PV = | (1 + r )^n |
| 400 / 200 = | (1 + 3%)^n | |
| 2 = | (1 + 3%)^n | |
| 2 = | 1.03^n | |
| n = | 23.45 years | |
| b) | FV/ PV = | (1 + r )^n |
| 400 / 200 = | (1 + 9%)^n | |
| 2 = | (1 + 9%)^n | |
| 2 = | 1.09^n | |
| n = | 8.04 years | |
| c) | FV/ PV = | (1 + r )^n |
| 400 / 200 = | (1 + 21%)^n | |
| 2 = | (1 + 21%)^n | |
| 2 = | 1.21^n | |
| n = | 3.64 years | |
| d) | FV/ PV = | (1 + r )^n |
| 400 / 200 = | (1 + 100%)^n | |
| 2 = | (1 + 100%)^n | |
| 2 = | 2^n | |
| n = | 1.00 years | |
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