Nicholas of Derme has $200,000 invested in a Bitcoin bank that pays 38.4% annually. How long...

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Question

Nicholas of Derme has $200,000 invested in a Bitcoin bank that pays 38.4% annually. How long (N) will it take for his funds to quadruple?

business finance

Answer 1

Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

(4*200,000)=200,000*(1.384)^n

4=(1.384)^n

Taking log on both sides;

log 4=n*log (1.384)

n=log 4/log (1.384)

=4.27 years(Approx).

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Answer 2

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