Find out how long it takes a $3,500 investment to double if it is invested at 7%

compounded quarterly Round to the nearest tenth of a year. Use the formula

A = P (1+)

T

iit

9.99 years

Step-by-step explanation:

P=$3,500

r=7%=0.07

n=4 (quarterly)

A = double of $3,500=

$3,500*2=$7,000

t=?

A=p (1+r/n) ^nt

$7,000=$3,500 (1+0.07/4) ^4t

$7,000=$3,500 (1+0.0175) ^4t

$7,000=$3,500 (1.0175) ^4t

Divide both sides by $3,500

2 = (1.0175) ^4t

Take the log to base 10 of both sides

log2=4t * log1.0175

0.30103=4t * 0.00753

0.30103=4 (0.00753) t

0.30103=0.03012t

t=0.30103/0.03012

t=9.99435

Approximately

9.99 years