You invest $180 in a mutual fund today that pays 6.80 percent interest annually. How long will it take to double your money? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to 0 decimal place, e. g. 545)

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Bonilla

Business

2 September, 08:04

You invest $180 in a mutual fund today that pays 6.80 percent interest annually. How long will it take to double your money? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to 0 decimal place, e. g. 545)

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Answers (1)

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Christine Cabrera · Answer 1

It will take 10 years and 197 days.

Explanation:

Giving the following information:

You invest $180 in a mutual fund today that pays 6.80 percent interest annually.

To calculate the time required to double the money, we need to use the following formula:

n=[ln (FV/PV) ]/ln (1+r)

n = [ln (360/180) ] / ln (1.068)

n = 10.54

To be more accurate:

0.54*365 = 197

It will take 10 years and 197 days.