posted by mINDY on .
You invest $5,000 at a 12% annual return that is compounded quarterly. That means that your interest earned is calculated and added to your account 4 times a year.
When would your investment double in value?
2 = (1+.12/4)^(4t)
t = 5.86 years,
or 6 years, since at 5.75 years the amount hasn't quite doubled.