Question

At 10 percent interest, how long does it take to quadruple your money?

Group of answer choices

15.36 years

14.33 years

15.11 years

14.55 years

15.56 years

Answer 1

It takes about 14.55 years for quadruple your money

Solution:

Given that,

At 10 percent interest, how long does it take to quadruple your money

Rule of 144:

The Rule of 144 will tell you how long it will take an investment to quadruple

Here,

Rate of interest = 10 %

Therefore, number of years to quadruple your money is obtained by dividing 144 by 10

Rule of 144 Formula:

`N = (144)/(R)`

Where:

N = Number of many years times.

144 = Is the constant variable.

R = Rate of interest.

`\rightarrow N = (144)/(10) = 14.4`

Thus it takes about 14.4 years for quadruple your money.

Another method:

If initial amount is $ 1 and it if quadruples it should be $ 4

We have to find the number of years if rate of interest is 10 %

Let "n" be the number of years

Then we can say,

`Amount = Principal(1+(R)/(100))^n`

`4 = 1(1+(10)/(100))^n`

`4 = 1(1+0.1)^n\\\\4= 1(1.1)^n\\\\4 = 1.1^n\\\\We\ know\ that,\\\\(1.1)^(14.55) = 1.1^n\\\\We\ know\ that\\\\If\ a^m = a^n\ then\ m = n\\\\Therefore,\\\\14.55 = n\\\\n = 14.55`

Thus Option D 14.55 years is correct