To get the number of years it will take for the tuition fee to double we use the compound interest formula, this is given by: FV=p(1+r/100)^n where: FV=future value p=principle r=rate n=years from the information given, we are required to solve for n given that: FV=$20,000 p=$10,000 r=7%
thus plugging in the formula we shall have: 20000=10000(1+7/100)^n solving for n we have: 2=(1.07)^n introducing natural logs we get: n=ln2/ln1.07 n=10.25 years