The value of the investment is expected to grow by 3% per year. how long will it take to double? a. about 4 years b. about 6 years c. about 12 years d. about 24 years

D. About 24 years

Step-by-step explanation:

Compounding is the means the future value of an amount saved today while discounting means the present value of a future amount.

In other words, we discount to know the present value of $1 in the future while we compound to know the future worth of $1 saved today.

Let the value of the investment be x. if it is expected to double in n years then using the compound interest formula

fv = pv(1 + r)^n

where fv and pv are the future and present values respectively and n is the time, r is the growth rate

2x = x(1 + 0.03)^n

2 = (1.03)^n

log 2 = log (1.03)^n

= n log 1.03

n = log 2/ log 1.03

n = 23.44

This is approximately 24 years hence option D is right

the answer is:

the answer is:

to solve the problem, we need to remember the quotient of power property, it's defined by the following relation:

if we have a quotienf of powers that have the same base, we need to keep the same base and subtract the exponent of the denominator power to the exponent of the numerator power.

so, we are given the expression:

then, calculating we have:

hence, the answer is:

have a nice day!