Answered: Your local bank pays 4% interest…

Your local bank pays 4% interest annually. You have $5,000 invested in the bank. How long will it take for your funds to double?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Question

Your local bank pays 4% interest annually. You have $5,000 invested in the bank. How long will it take for your funds to double?

Please show your work in excel.

Expert Solution

Step 1

Given:

Interest rate = 4%

Present value = $5,000

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