Question

Find out how long it takes a $2900 investment to double if it is invested at 9% compounded quarterly. Round to the nearest tenth of a year.

Answer 1

7.8 years

Explanation:

Formula

`PV(1+(i)/(n))^(nt)`

we have

`2900(1+(.09)/(4))^(4t)=5800\\1.0225^(4t)=2\\4t=log_(1.0225)2\\4t=31.1518\\t=7.787957`

Which rounds to

7.8