Question

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 | |

Answer #1

FV = PV(1+r)^{n}

FV= Future Value

PV = Present Value

R = Rate of Return

N = No of years

Case 1 : When amount gets doubled

FV = PV(1+r)^{n}

FV= Future Value = 2

PV = Present Value = 1

R = Rate of Return = 10%

N = No of years = ?

FV = PV(1+r)^{n}

2= 1(1+.10)^{n}

2 = (1.1)^{n}

n = 7 years (approx)

Case 2 : When amount gets quadruple

FV = PV(1+r)^{n}

FV= Future Value = 4

PV = Present Value = 1

R = Rate of Return = 10%

N = No of years = ?

FV = PV(1+r)^{n}

4= 1(1+.10)^{n}

4 = (1.1)^{n}

n = 14 years 9 months (approx)

The above values of n are identified using calculator.

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

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

How long will it take to double your money at 6% interest
compounded annually?

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.)

1.
How long will it take to double your money with an interest
rate of 10 percent?
20 percent? -42,424.174
40 percent? - 7,547.168
What about tenfold increase in your money with a growth rate of
50 percent? - 62.4213
So I know the answers already but I need help explaing and
articulatong. So a step by step detailed walkthrough like your
explaining it to a baby ;like over detailed. and like a detailed
solution conclusion which wraps it all...

If you deposit money today in an account that pays 6 percent
annual interest, how long will it take to double your money?

How long will it take to double your savings at 10 percent
annual rate, compounded semi-annually?
14.21 years
9.01 years
7.10 years
12.90 years

How long will it take a sum of money to double if interest is at
11% compounded semiannually?

How long will it take for $26,000 to double if the interest rate
is 6% per year to the nearest 1/100th of a
year?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 2 minutes ago

asked 5 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 13 minutes ago

asked 16 minutes ago

asked 16 minutes ago

asked 19 minutes ago

asked 21 minutes ago