Keiko deposits money in an account paying i(12) = 4.550%. How many years until she has at least doubled her initial investment. 16 years O b. 15 years О с. 19 years a.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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9. the math of interest. please indicate if you are unsure or totally sure about the answer

Keiko deposits money in an account paying ¡(¹2) = 4.550%. How many years until she has at least doubled her
initial investment.
16 years
O b. 15 years
19 years
d. 23 years
20 years
a.
C.
e.
Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 ( Quite sure: >80%)
Transcribed Image Text:Keiko deposits money in an account paying ¡(¹2) = 4.550%. How many years until she has at least doubled her initial investment. 16 years O b. 15 years 19 years d. 23 years 20 years a. C. e. Certainty OC=1 (Unsure: <67%) OC=2 (Mid: >67%) OC=3 ( Quite sure: >80%)
Expert Solution
Step 1

Rule 72

According to Rule 72, with interest rate (r) in percentage term, the number of years required to double the investment (n) is calculated as shown below.

n=72r

 

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