Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- If Cheng Corporation can invest $10,000 at 10 percent interest compounded annually, approximately how many years will it take for the $10,000 to grow to $20,000?

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
- If Cheng Corporation can invest $10,000 at 10 percent interest compounded annually, approximately how many years will it take for the $10,000 to grow to $20,000?

Quizplus · Accepted Answer

Using the future value table in Appendix 8 or on the textbook companion website, we can find that $10,000 invested at 10% interest compounded annually will grow to $20,000 in approximately 7.27 years. Therefore, the best choice is B, slightly more than 7 years.

Use the Present Value and Future Value Tables Included in Appendix