8. Matt Wayne has $20,000 to invest and would like to double his money for the purchase of a new truck. Under current market conditions, and given his level of risk tolerance he can only earn 5 percent on his investment. Approximately how long will it take him to get his $40,000?

It will take 14 years and 77 days to double the money.

Explanation:

Giving the following information:

Matt Wayne has $20,000 to invest and would like to double his money for the purchase of a new truck. The interest rate is 5 percent.

We need to find the number of years to achieve $40,000. We will use the following variation of the final value formula:

FV= PV*(1+i)^n

Isolating n:

n=[ln(FV/PV)]/ln(1+r)

n= [ln(40,000/20,000)]/ ln(1.05)= 14.21 years

To be more accurate:

0.21*365= 77

It will take 14 years and 77 days to double the money.

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