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47. (2 points) How long does it take $1,000 to quadruple in
value if you have an 11% annual return? Assume annual compounding,
and express your an

User ICart
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1 Answer

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To find out how long it takes for $1,000 to quadruple in value with an 11% annual return, we can use the compound interest formula:

Future Value = Present Value * (1 + Interest Rate)^Time

In this case, we want to find the time it takes for the Future Value to be four times the Present Value:

$4,000 = $1,000 * (1 + 0.11)^Time

Dividing both sides of the equation by $1,000, we get:

4 = (1.11)^Time

Taking the logarithm of both sides (base 1.11), we have:

log base 1.11 (4) = Time

Using a calculator, we find that log base 1.11 (4) is approximately 7.116.

Therefore, it takes approximately 7.116 years for $1,000 to quadruple in value with an 11% annual return when compounded annually.

User Le Khiem
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