Danny decided to invest his $500 tax refund rather than spending it. He found a bank that would pay him 4% interest, compounded
quarterly. If he deposits the entire $500 and does not deposit or withdraw any other amount, how long will it take him to double his money in the account? Round your answer to the nearest tenth of a year. It will take Answer years for his investment to double.
Present value, PV = $500 Future value, FV = 2*PV = 2*500 = $1,000 Rate, r = 4% = 0.04 Compounding times in a year, n = 4 (compounded quarterly) Time, t = ??
The future value expression is stated as: FV = PV (1+r/n)^nt
