Question 390755
determine the time it takes to double an investment in an account that pays an interest of 4% per annum, compounded quarterly.
======
Let's say you invest "x" dollars at 4%.
Doubling will give you "2x" dollars.
---
Formula:
2x = x(1+(0.04/4))^(4t) where t is the number of years.
---
2 = (1+0.01)^4t
---
Take the log of both sides and solve for "t":
4t*log(1.01) = log2
---
4t = log(2)/log(1.01)
---
4t = 69.66
---
t = 17.42 years
=======================
Cheers,
Stan H.
================