Question

You invest $180 in a mutual fund today that pays 6.80 percent interest annually. How long will it take to double your money? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to 0 decimal place, e.g. 545)

Answer 1

Answer:

It will take 10 years and 197 days.

Explanation:

Giving the following information:

You invest $180 in a mutual fund today that pays 6.80 percent interest annually.

To calculate the time required to double the money, we need to use the following formula:

n=[ln(FV/PV)]/ln(1+r)

n= [ln(360/180)] / ln(1.068)

n= 10.54

To be more accurate:

0.54*365= 197

It will take 10 years and 197 days.