Asked by Mikey Tiffany on May 01, 2024
Verified
Your client invests $10,000 today at a rate of return of 7.7% compounded quarterly. Rounded to the nearest month, how long will it take the investment to grow to $22,000?
Compounded Quarterly
Interest on an investment or loan that is calculated and added to the principal four times a year.
Rate of Return
The gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
- Calculate the time it takes for an investment to grow to a certain amount under various compounding frequencies.
Verified Answer
SD
Learning Objectives
- Calculate the time it takes for an investment to grow to a certain amount under various compounding frequencies.