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zysi [14]
3 years ago
14

You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 9 percent inter

est. Approximately how long must you wait for your investment to double in value?
Business
1 answer:
Virty [35]3 years ago
5 0

Answer:

The answer is 8 years

Explanation:

FV= PV(1+r)^n

Where

PV= let's assume PV is $100

FV = Since FV will be doubled, the we have $200($100 x 2)

n= ?

r= 9percent

Let us use the rule of 72 which states that an investment will double when:

Annual Investment Rate x Number of Years = 72.

Number of years = 72/9

= 8 years

The investment is doubled in 8 years at the rate of 9percent

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