# How long would it take an investment to double under each of the following conditions?(a) Interest is 3.3% compounded monthly. (Enter your answer as a whole number of years and months.)monthsyears and(b) Interest is 7% compounded continuously. (Round your answer to three decimal places.)years

Question
3 views help_outlineImage TranscriptioncloseHow long would it take an investment to double under each of the following conditions? (a) Interest is 3.3% compounded monthly. (Enter your answer as a whole number of years and months.) months years and (b) Interest is 7% compounded continuously. (Round your answer to three decimal places.) years fullscreen
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Step 1

(a)

Interest Rate = 3.3%

Type of Compounding = Monthly

Number of Compounding = 12

Assumption:

Present Value of Investment = \$1

Future Value of Investment = \$2

Calculation of time period required to double the investment using excel NPER function:

To open the "NPER function" window - MS-Excel --> Formulas --> Financials --> NPER.

Step 2

(b)

Interest Rate = 7% or 0.07

Type of Compounding = Continuously

Assumption:

Present Value of Investment = \$1

Future Valu...

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