Answer:
This question requires us to tell the time in which investment of $ 5000 will double based on a 6%, 12% and 18% interest rate. Time period (n) based on a 6%, 12% and 18% interest rate is calculated below.
(FV =PV (1+i)^n)
6%
10,000 = 5,000 (1.06)^n
Log 2 = n log 1.06
n = 11.9 years
12%
10,000 = 5,000 (1.12)^n
Log 2 = n log 1.12
n = 6.1 years
18%
10,000 = 5,000 (1.12)^n
Log 2 = n log 1.18
n = 4.2 years
