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16 December, 09:31

How long (in years and months) will it take for an investment to double at 15% compounded quarterly?

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  1. 16 December, 09:49
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    First thing the formula is slightly mistated.

    it should be

    A=P (1+r/n) nt (you had rt fo the exponent and it should be nt

    now lets solve this thing

    you want A = 2P (double your money

    2P = P (1+r/n) nt

    we can divide through by P adn put in the values we know

    2 = (1+.085/2) 2t

    2 = (1.0425) 2t

    and now we can take the log of both sides to make it easy to solve our equation

    log (2) = 2tlog (1.0425)

    .301 = 2t (.018)

    divide both sides by. 018

    16.653 = 2t

    t = 8.327 (number of years to double your money at this rate

    check it

    (1.0425) 16.653 = 2
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