If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double your money? Round your answer to two decimal places. years
If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double your money? Round your answer to two decimal places. years
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double
your money? Round your answer to two decimal places.
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea7f9626-cbeb-40dd-89e8-5820cd6fdc7e%2Fc52bb2a0-62d6-474c-a439-ce9358ea65ec%2F2rdnmde_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If you deposit money today in an account that pays 12.5% annual interest, how long will it take to double
your money? Round your answer to two decimal places.
years
Expert Solution
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Step 1
The rate of interest is 12.5%
Assume,
The present value is $1.
The future value is $2 as the amounts gets doubled.
The formula used to compute time period as follows:
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