SOLUTION: A person invested $17100 at 7.3% interest compounded quarterly. Estimate the number of years for the investment to double. A) 23 B) 33 C) 10 D) 12

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Question 1102640: A person invested $17100 at 7.3% interest compounded quarterly. Estimate the number of years for the investment to double.
A) 23 B) 33 C) 10 D) 12
Answer by greenestamps(13216) About Me  (Show Source):
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The amount invested is irrelevant.

Money earning 7.3% annual interest, compounded quarterly, will have a growth factor of 1%2B.073%2F4=1.01825 each quarter. To find the number of quarters it takes for the amount to double, we need to find how many times the growth factor must be applied to make the overall growth factor equal to 2:

1.01825%5En+=+2
n%2Alog%281.01825%29+=+log%282%29
n+=+log%282%29%2Flog%281.01825%29+=+38.326

It takes about 38.326 quarters, or 9.58 years, for the value of the investment to double.