Question

Jake puts his money in account earning 7% compounded annually and wants to leave it there...

  • Jake puts his money in account earning 7% compounded annually and wants to leave it there until it reaches ten times its original value.
    • How long must he leave the money in the account?
    • How long would it take if the 7% APR was compounded monthly instead of annually?
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Homework Answers

Answer #1

1)

Hence, it will take 34.03 or 34 years

2)

Hence, it will take 396 months or 33 years (396/12)

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