The number of quarters needed to double an investment when a lump sum is invested at 10%, compounded quarterly, is given b $\mathrm { n } = \frac { \ln 2 } { \ln 1.025 }$ Find n, rounded to the nearest tenth.
A) 28.1 quarters
B) 33.1 quarters
C) 24.1 quarters
D) 31.1 quarters

Question

Quizplus · Accepted Answer

The correct answer is A because the formula for the number of quarters needed to double an investment when a lump sum is invested at 10%, compounded quarterly, is given by n = (ln 2) / (ln 1.025). Plugging in the values, we get n = 28.09, which rounds to 28.1 quarters.

The Number of Quarters Needed to Double an Investment When n=ln⁡2ln⁡1.025\mathrm { n } = \frac { \ln 2 } { \ln 1.025 }n=ln1.025ln2​

The Number of Quarters Needed to Double an Investment When $\mathrm { n } = \frac { \ln 2 } { \ln 1.025 }$