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.
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
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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Question
9. the math of interest. please indicate if you are unsure or totally sure about the answer

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.
Step by step
Solved in 3 steps
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