How long does it take for an investment to double in value if it is invested at 17% compounded quarterly?Compounded continuously?
+37084 For compunding QUARTERLY the QUARTERLY (periodic) interest rate would be 17%/4 = 4.25% (i= .0425)
then FV = PV (1+i)^n we want to double PV ...or FV = 2
2 = (1+.0425)^n
LOG (2) = n LOG (1.0425)
n= 16.653 PERIODS Period is 3 months 16.653 x 3 =49.96 months = 4.16 years
For CONTINUOS COMPOUNDING FV = PV e^(rt) r= .17
2 = e^(.17 t)
ln(2) = .17t
t= 4.07 years (it would double about 1 month earlier than the first example)
