A recent advertisement in the financial section of a magazine carried the following claim: "Invest your money with us at 14 percent,compounded annually,and we guarantee to double your money sooner than you imagine." Ignoring taxes,how long would it take to double your money at a nominal rate of 14 percent,compounded annually?
A) 3.66 years
B) 5.29 years
C) 7.00 years
D) 10.24 years
E) 14.00 years

Question

Quizplus · Accepted Answer

Using a financial calculator:
I/Y = 14, PV = -1, PMT = 0, FV = 2, cpt N = 5.29

A Recent Advertisement in the Financial Section of a Magazine