At 8% compounded annually, how long will it take $750 to double?
A) 6.5 years
B) 48 months
C) 9 years
D) 12 years

Question

Quizplus · Accepted Answer

Using the formula for compound interest, A = P(1+r/n)^(nt), where A is the final amount, P is the principal, r is the interest rate, n is the number of times compounded per year, and t is the time in years, we can solve for t:
2P = P(1+0.08/1)^(1t)
2 = 1.08^t
t = ln(2)/ln(1.08) ≈ 9.006
Therefore, it will take approximately 9 years for $750 to double at 8% compounded annually. Choice C is the closest answer.

At 8% Compounded Annually, How Long Will It Take $750