Question

if gh¢400.00 is deposited at a bank at 10% per annum compounded quarterly, how long will it take the deposit to double it value.​

Answer 1

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Answer:

  7 years

Step-by-step explanation:

The multiplier each quarter is 1 +10%/4 = 1.025. The number of quarters, n, that must pass before the value is multiplied by 2 is given by ...

  1.025^n = 2

Taking logarithms, we can solve for n:

  n×log(1.025) = log(2)

  n = log(2)/log(1.025) ≈ 28.071

It will take 28 quarters, or 7 years, for the value to double.