SOLUTION: How long will it take for an investment to double in value if the annual interest rate is 10% and interest is compounded every 4 months?
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Question 1139234: How long will it take for an investment to double in value if the annual interest rate is 10% and interest is compounded every 4 months? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! P=Po(1+.10/3)^3n, where n is the number of years.
Rule of 70 would suggest about 7 years.
P=2Po for doubling
so 2=(1+.03333)^3n.
take ln both sides
ln2=3n ln(1.03333)
3n=21.139, dividing ln2 by ln 1.0333
n=7.046 years.
