How many years will it take you to double your money if; Round off your answers to one decimal place. 1) Your ROI or rate of ret
urn is 4%? years. 2) Your ROI is 10%? years. 3) Your ROI is 13%? years.
1 answer:
<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%}.
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