How to Double Your Money with 7.25% Annual Compound Interest

Calculate the Time Required to Double Your Money with 7.25% Annual Compound Interest

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Question

How many years will it take money to double at 7.25% per year, compounded annually?

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A. B. C. D. E.

E

To solve this question, choose a future value that is twice the size of the present value. The actual number will not matter. On the BAII Plus, press 7.25 I/Y, 1000

PV, 0 PMT, 2000 +/- FV, CPT N. On the HP12C, press 7.25 i, 1000 PV, 0 PMT, 2000 CHS FV, n. Note that the HP12C will show 10 for the answer. The answer will be the same as long as the FV is twice as large as the PV. Make sure that the BAII Plus has the P/Y value set to 1.