Answer:
It will take 14 years and 77 days to double the money.
Explanation:
Giving the following information:
Matt Wayne has $20,000 to invest and would like to double his money for the purchase of a new truck. The interest rate is 5 percent.
We need to find the number of years to achieve $40,000. We will use the following variation of the final value formula:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+r)
n= [ln(40,000/20,000)]/ ln(1.05)= 14.21 years
To be more accurate:
0.21*365= 77
It will take 14 years and 77 days to double the money.
