Arithmetic Ability
Compound Interest

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Q.

At 3% annual interest compounded monthly, how long will it take to double your money?

View Answer

Correct choice: D

Explanation:

At first glance it might seem that this problem cannot be solved because we do not have enough information. It can be solved as long as you double whatever amount you start with. If we start with $100, then P = $100 and FV = $200. FV=P(1+r/n)^nt
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