Suppose you deposit $1,000 into an account which pays 4% annual interest, compounded quarterly. Approximately how long will it take for the amount of money in the account to double?

The number of years will be 5 years

Explanation:

The number of years will be computed using the excel formula as:

=Nper (rate, pmt, pv, fv, type)

where

Nper is number of years

rate is 4%

But is compounded quarterly, So,

rate = 4% * 4

rate = 16%

pmt is $0

pv is Present value which is - $1,000

fv is future value which is $2,000 (as it will get doubled)

Putting the values above:

=Nper (4% * 4,0,-1000,2000,0)

= 4.67 years or 5 years

Therefore, the amount will get double in 5 years