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how long will it take an investment to quadruple if it earns 8% compounded semi-annually? did I did the calculations right or am I missing something ?...
Rounded to the nearest quarter year, how long will it take an investment to quadruple if it earns 8% compounded semi-annually? did I did the calculations right or am I missing something ?
So assuming that the initial investment is =P
Then the future value of the investment which is A= 4P
The rate of the interest; r=8%=0.08
The number of compounding period per year= 2
So let time token= t years
In order to solve this problem I will be using the compound interest formula;
A= P(1+r)^nt
4P= P (1+0.08/2)^2t
4= (1.04)^2t
Ln4= 2t In(1.04)
t=In (4)/ 2 In (1.04)
= 17.67 which is approximately equal to = 18 years
final answer, 18 years
