Question

port Calculate the approximate number of years Steven would need to wait to double his money if he could earn 3%, 6%, and 20% interest on his savings. (Round answers to nearest whole number.) Interest on savings No. of years 3% years 6% years 20% years

Answer 1

>>>>

Present Value = $1

Future value = $2

r = Interest rate = 3%

Future Value = Present Value * (1+r)^n

$2 = $1 * (1+3%)^n

(1.03)^n = 2

n = 23.4497723 years

>>>>

Present Value = $1

Future value = $2

r = Interest rate = 6%

Future Value = Present Value * (1+r)^n

$2 = $1 * (1+6%)^n

(1.06)^n = 2

n = 11.8956611 years

>>>>

Present Value = $1

Future value = $2

r = Interest rate = 20%

Future Value = Present Value * (1+r)^n

$2 = $1 * (1+20%)^n

(1.20)^n = 2

n = 3.80178402 years

Interest on Savings No. of Years 3% 23.45 years 6% 11.9 years 20% 3.8 years