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Homework answers / question archive / The stated interest rate for a bank account is 4% p

The stated interest rate for a bank account is 4% p

Finance

The stated interest rate for a bank account is 4% p.a. and the interest is paid semi-annually. How many years will it take for the initial deposit to double its value? 
28 
 

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Computation of Number of Years using NPER Function in Excel:

=nper(rate,pmt,-pv,fv)/2

Here,

Number of Years = ?

Rate = 4%/2 = 2%

PMT = 0

PV = $100 (Assumed)

FV = $100*2 = $200

Substituting the values in formula:

=nper(2%,0,-100,200)/2

NPER or Number of Years = 17.50 years 

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