At 14 percent interest, how long does it take to quadruple your money?
A) 10.42 years
B) 10.58 years
C) 11.03 years
D) 11.21 years
E) 11.36 years

Question

Quizplus · Accepted Answer

Using the formula for compound interest, we know that:
A = P(1 + r/n)^(nt)
where:
A = final amount
P = initial amount
r = interest rate (as a decimal)
n = number of times interest is compounded
t = time (in years)
Let's set A = 4P and plug in the other values:
4P = P(1 + 0.14/1)^(1*t)
Simplifying:
4 = (1.14)^t
Taking the natural log of both sides:
ln(4) = t*ln(1.14)
t = ln(4) / ln(1.14)
t ≈ 10.58 years.

Therefore, the answer is B.

At 14 Percent Interest, How Long Does It Take to Quadruple