Respuesta :
It takes about 14.55 years for quadruple your money
Solution:
Given that,
At 10 percent interest, how long does it take to quadruple your money
Rule of 144:
The Rule of 144 will tell you how long it will take an investment to quadruple
Here,
Rate of interest = 10 %
Therefore, number of years to quadruple your money is obtained by dividing 144 by 10
Rule of 144 Formula:
[tex]N = \frac{144}{R}[/tex]
Where:
N = Number of many years times.
144 = Is the constant variable.
R = Rate of interest.
[tex]\rightarrow N = \frac{144}{10} = 14.4[/tex]
Thus it takes about 14.4 years for quadruple your money.
Another method:
If initial amount is $ 1 and it if quadruples it should be $ 4
We have to find the number of years if rate of interest is 10 %
Let "n" be the number of years
Then we can say,
[tex]Amount = Principal(1+\frac{R}{100})^n[/tex]
[tex]4 = 1(1+\frac{10}{100})^n[/tex]
[tex]4 = 1(1+0.1)^n\\\\4= 1(1.1)^n\\\\4 = 1.1^n\\\\We\ know\ that,\\\\(1.1)^{14.55} = 1.1^n\\\\We\ know\ that\\\\If\ a^m = a^n\ then\ m = n\\\\Therefore,\\\\14.55 = n\\\\n = 14.55[/tex]
Thus Option D 14.55 years is correct
