Answered

Discover new perspectives and gain insights with IDNLearn.com's diverse answers. Find the information you need quickly and easily with our reliable and thorough Q&A platform.

david invest $10,000 in a CD that pays 8% compounded quarterly. how long will it take his investment to double/

Sagot :

Answer:  

Number of year = 34.74 year (Approx.)  

Step-by-step explanation:  

Given:  

Amount invested = $10,000  

Interest rate = 8% (compounded quarterly)  

Future value = 2 x Amount invested

Find:  

Number of year  

Commutation:  

Future value = 2 x Amount invested  

Future value = 2 x 10,000  

Future value = $20,000  

Number of year (quarterly) = 40  

Interest rate (Semi-annual) = 8% / 4 = 2%  

So.  

A = P[1+r]ⁿ

20,000 = 10,000[1+2%]⁴ⁿ  

2 = [1.02]⁴ⁿ  

n = 34.744 year  

Number of year = 34.74 year (Approx.)

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Discover the answers you need at IDNLearn.com. Thanks for visiting, and come back soon for more valuable insights.