Question

An investment of $1 will double in twenty years at the number of years required for an investm interest, convertible three times per year, and will double in twenty years at a force of interest 8. Determine three times per year, and which is numerically equivalent to 8.

Answer 1

Formula:
Future value = Present value×(1+Interest rate)^n

FV= PV×(1+r)^n

n= no.of years.

2 = 1×(1+r)^20
r = 3.52649%

B. Convertible 3 times in a year = 3.52649% /3 = 1.1755 %

3 = 1×(1+0.011755 ) ^3n
n = 31.33 years

The no. of for tripling the Investment is 31.33 years.