A manufacturer spends $12000 in parts to build a car, they then go and sell that car for $25000. What percentage of profit did t
2 answers:
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<h3>Answer:</h3>
- 17.7 years
- 7.3 years
- 5.7 years
Assuming the return is compounded annually, the multiplier each year for rate "r" is (1+r). Then the multiplier for "t" years is (1+r)^t. We want this to be 2.
... 2 = (1+r)^t
... log(2) - t·log(1+r)
... log(2)/log(1+r) = t
The attachment shows the rounded calculator result for r={4%, 10%, 13%}.