Question

At 5 percent interest, how long does it take to double your
money? **(Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)**

Length of time
years

At 5 percent interest, how long does it take to quadruple your
money? **(Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)**

Length of time
years

Answer #1

a.We use the formula:

A=P(1+r/100)^n

where

A=future value($2x)

P=present value($x say)

r=rate of interest

n=time period.

2x=x*(1.05)^n

2=(1.05)^n

Taking log on both sides;

log 2=n*log 1.05

n=log 2/log 1.05

which is equal to

=**14.21 years(Approx).**

b.We use the formula:

A=P(1+r/100)^n

where

A=future value($4x)

P=present value($x say)

r=rate of interest

n=time period.

4x=x*(1.05)^n

4=(1.05)^n

Taking log on both sides;

log 4=n*log 1.05

n=log 4/log 1.05

which is equal to

=**28.41 years(Approx).**

At 6.1 percent interest, how long does it take to double your
money? (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.) Length of time years At
6.1 percent interest, how long does it take to quadruple it? (Do
not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.) Length of time years.

At 6.5% interest, how long does it take to double your
money?
(Do not round intermediate calculations. Round your answer to 2
decimal places.)
Length of time years At 6.5% interest, how long does it take to
quadruple it?
(Do not round intermediate calculations. Round your answer to 2
decimal places.) Length of time years

Problem 5-7 Calculating the Number of Periods [LO4]
At 7 percent interest, how long does it take to double your
money? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
At 7 percent interest, how long does it take to quadruple it?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)

6. How long does it take to double your money at 10 percent
interest? How long does it take to quadruple your money?
Input area:
Output area:
Present value
Years
Interest rate
Future value
$
1.00
***?
10%
$
2.00
1.00
***?
10%
4.00

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calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Difference ____________
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