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Practice with the rule of 70: If you inherit $10,000 this year and you invest the money so that it grows 7 percent per year, how many years will it take for your investment to be worth $20,000

Respuesta :

Answer:

10.24 years

Explanation:

Below is the calculation for a number of years:

Present value of the money = 10000

The interest rate on the money = 7%

Future value of the investment = $20000

Future value = Present Value (1 + r)^n

20000 = 10000(1 + 7%)^n

20000 / 10000 = (1 + 7%)^n

2 = (1 + 7%)^n

2 = (1.07)^n

Now solve for the value of n by taking ln.

So, n = 10.24 years

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