Question:
How long would it take to double your money in an account paying 8% compounded quarterly? Ignoring leap years, the investment will be doubled in __________ years and __________ days. (Round to the nearest whole number as needed.)
Time Value of Money:
The time value of money theory postulates that the worth of money changes and this is attributed to interest earned plus the time period the money is invested. The theory illustrates the relationship between four variables: interest rates, time period, present amount, and future quantity. As a result, if you want to know how long it will take for your money to double, you must also know the other three variables, and we will also utilize logarithms.
Answer and Explanation:1
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To calculate the number of years it takes to double your money, apply the below steps.
1. Assume present value =X implying that the future value =2X
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