How many years will it take to double your money if you invest an amount A now at a nominal rate of 4% compounded semiannually?

• 17
• 17.5
• 17.7
• 18
• 18.5

References

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

Solution: B

[[math]] 2=\left(1+\frac{i^{(2)}}{2}\right)^n=(1.02)^{2 n} \implies 2 n=\ln (2) / \ln (1.02)=35.0028 \implies n=17.50 [[/math]]

References

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