The value initial amount deposited gets doubled at a rate of 14%. Then it takes four years.
What is compound interest?
Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.
The value of an investment is expected to grow by 14% per year.
Let the invested amount will be P. Then the amount will be 2P after n years.
Then we know the formula of compound interest given as
[tex]\rm Amount = initial\ investment (1 + \dfrac{r}{100})^n[/tex]
Put the value to get the value of t.
2P = P (1.14)ⁿ
2 = (1.14)ⁿ
take log both sides, we have
log 2 = n log 1.14
n = 5.29
n ≡ 6
In six years, the initial amount will get doubled.
More about the compound interest link is given below.
https://brainly.com/question/25857212
