Question

Martha has been learning about time value of money and she would like to know how long it would take to double her money at 5.7 percent interest? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years Martha now wants to know how long it would take it to quadruple at 5.7 percent interest? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years

Answer 1

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Martha

Answer 1

A=P*(1+i)^n

A= amount at maturity

P= initial investment

i= 5.7%= 0.057

n=?

A=P*(1+i)^n

2P=P*(1+.057)^n

2=(1.057)^n

n= 12.5 years

Answer 2

A=P*(1+i)^n

A= amount at maturity

P= initial investment

i= 5.7%= 0.057

n=?

A=P*(1+i)^n

4P=P*(1+.057)^n

4=(1.057)^n

n= 25 years