(4–11)

Time for a Lump Sum to Double To the closest year, how long will it take $200 to double if it is deposited and earns the following rates? [Notes: (1) See the Hint for Problem 4-9. (2) This problem cannot be solved exactly with some financial calculators. For example, if you enter PV = –200, PMT = 0, FV = 400, and I = 7 in an HP-12C and then press the N key, you will get 11 years for part

a. The correct answer is 10.2448 years, which rounds to 10, but the calculator rounds up. However, the HP-10B gives the exact answer.]

a. 7%

b. 10%

c. 18%

d. 100%