How long does it take for a fund to grow to four times its original value if growing at an annual rate of 7%?

• 7
• 10.25
• 16.24
• 20.5
• 28

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.

Solution: D

[math]1.07^n=4[/math] so [math]n \ln (1.07)=\ln (4)[/math] so [math]n=\ln (4) / \ln (1.07)=20.48954[/math] years.

References

Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.