How long does it take an investment to quadruple in value if it earns 5% simple interest per year?

Question

I'm not sure about how to find it but the Awnser: 60 years

score 4 · Answer 1 · answered Mar 19 '15 at 04:23

4

Say the investment amount is $P$ and takes $\color{blue}{T}$ years to grow to $4P$ :

$$P + P*0.05*\color{blue}{T} = 4P$$

Divide $P$ through out and get $$1 + 0.05*\color{blue}{T} = 4$$

See if you can take it home from here..

answered Mar 19 '15 at 04:23

AgentS

1 Answers1