Answer:
The number of years will be 5 years
Explanation:
The number of years will be computed using the excel formula as:
=Nper(rate,pmt,pv,fv,type)
where
Nper is number of years
rate is 4%
But is compounded quarterly, So,
rate = 4% × 4
rate = 16%
pmt is $0
pv is Present value which is -$1,000
fv is future value which is $2,000 (as it will get doubled)
Putting the values above:
=Nper(4%× 4,0,-1000,2000,0)
= 4.67 years or 5 years
Therefore, the amount will get double in 5 years
