posted by .

An internet investment company advertises that if you invest your money with them at 14%, compounded annually, they guarantee yo double your money sooner than you can imagine. Ignoring taxes, how long would it take to double your money at a simple rate of 14% compounded annually?

a. approx 3.5 yrs
b. approx 5 yrs
c. exactly 7 yrs
d. approx 10 yrs
e. Exactly 14 yrs

I chose b. approx 5 yrs pretending that my initial investment was \$5k: 5,000+700 (1), 5700+798 (2), 6498+909.72 (3), 7407.72+1037.0808 (4), 8444.8008+1182.27 (5)
9627.07+1347.79= \$10,974.863

Am I correct?

• math- check my answer -

For simple interest
2P=P+0.14tP
0,14t=1 t= approx 7 yrs

For compound interest
2P=P(1.14)^t
1.14^t=2
t=ln(2)/ln(1.14)=5.29 approx 5 yrs

## Similar Questions

1. ### math

Jim wants to deposit money in an account to save for a new stereo system in two years. He wants to have \$4,000 available at the time. The following rates are available to him: 6.2% simple interest 6.1% compounded annually 5.58% compounded …

You invest \$3000 in a savings account where you earn 4% interest compounded continuously a) what is the formula A(t) for the balance after t years?
3. ### math

If I invest \$1,000 today in a Profit-Sharing Plan and earn a 6% return on my money, approximately how long will it take me to double your investment?
4. ### Math

Suppose you invest your money into an account that pays 4.0% per year compounded quarterly. How long (in years) will it take for your money to triple?

Suppose you invest your money into an account that pays 4.0% per year compounded quarterly. How long (in years) will it take for your money to triple?
6. ### math - earn interest

invest money that pays 6.3% interest/year compounded quarterly. How long should invest if want to double initial investment?
7. ### math

You invest money that pays 6.3% interest/year compounded quarterly. How long should you invest if want to double initial investment?
8. ### Math

How long would it take to double your money at 15.86 percent with interest compounded annually?
9. ### math(compunded interest )

6.how long will it take for a sum of money to quadruple at 10 percent compounded annually ?
10. ### Precalc

suppose you want to invest \$60,000 for ten years. You can invest your money in a CD that earns 4% interest, compounded quarterly and has no risk, or you can invest your money in futures that ear 10% interest, compounded quarterly. …

More Similar Questions