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.)