Answer:
-7/48 in
Step-by-step explanation:
Assuming that the movement varies linearly with time,
3 years ------> -7/16 in
1 year -------> -7/16 ÷ 3 = -7/48 in
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
Substituting;
1000 = 500 (1+0.04/4)^4t
2 = (1.01)^4t
ln 2 = 4t ln 1.01
0.6931 = 4t* 0.00995
0.6931 = 0.0398t
t = 17.414 years
Time required for the amount to double is 17.41 years.
This can be expressed by,
80 + 40 + 20 + 10 = 150
38.71428571428571 or 38.7
