If $1,000 Is Invested in an Account with 9% Interest

question 28

Multiple Choice

If $1,000 is invested in an account with 9% interest compounding yearly, approximately how many years will it take for the amount to double? Please refer to the following Future Value table:
$\begin{array}{|r|r|r|r|r|r|r|}\hline \text {Future}\\\text {Value of}\\\$1\\\hline&4 \% & 5 \% & 6 \% & 7 \% & 8 \% & 9 \%\\\hline 1 & 1.040 & 1.050 & 1.069 & 1.07 & 1.080 & 1.090 \\\hline 2 & 1.082 & 1.103 & 1.124 & 1.14 & 1.160 & 1.188 \\\hline 3 & 1.125 & 1.158 & 1.191 & 1.22 & 1.260 & 1.295 \\\hline 4 & 1.170 & 1.216 & 1.26 & 1.311 & 1.360 & 1.412 \\\hline 5 & 1.217 & 1.276 & 1.33 & 1.40 & 1.469 & 1.539 \\\hline 6 & 1.265 & 1.340 & 1.419 & 1.501 & 1.587 & 1.677 \\\hline 7 & 1.316 & 1.407 & 1.504 & 1.606 & 1.714 & 1.828 \\\hline 8 & 1.369 & 1.477 & 1.594 & 1.719 & 1.851 & 1.993 \\\hline 9 & 1.423 & 1.551 & 1.689 & 1.839 & 1.999 & 2.172 \\\hline 10 & 1.480 & 1.629 & 1.791 & 1.967 & 2.159 & 2.367 \\\hline\end{array}$

• A) Slightly more than 8 years
• B) Exactly 9 years
• C) 5 years
• D) Slightly less than 7 years

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