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P4-3 Future value tables: How long to double or quadruple

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P4-3 Future value tables. Use the future value interest factors in Appendix Table A-1 in each of the cases shown in the table on the facing page to estimate, to the nearest year, how long it would take an initial deposit, assuming no withdrawals,

a. To double.
b. To quadruple.

Case Interest rate
A 7%
B 40
C 20
D 10

Appendix Table A-1
Future Value Interest Factors for One Dollar Compounded at i Percent for n Periods:
n
FVIFi,n = (1 + i ).

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Solution Summary

The solution determines how long to double or quadruple initial deposit.

Solution Preview

Assume that you have 100 dollar, if you want it to double (you will need 200 dollars in the future), if you want it to quadruple (you will need 400 dollars in the future)

a. 7%,
it will take 10.2 years to double (round up to 11 years) = 100*(1.07^11) = 210.48 ...

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