I invested all of my money in an investment that pays the same annually compounded interest rate for 30 years. At the end of the first 10 years, my investment had doubled in value.
A. After how many years will my original investment have multiplied by 4 in value?
B. If i initially invested $5000, how much will my investment be worth at the end of the 30 years?
Find the rate (1 + r)10 = 2 (after ten years the investement doubled)
solve for r = .071773
(1 + .071773)n = 4 after 'n' years the investement is 4 times original
solve for n = 20 years (makes sense....it doubled in ten years)
FV = 5000 (1+ .071773)30 = $ ......... at the end of 30 years