If money is invested at r percent interest, compounded annually, the amount of the investment will double in approximately 50/r years. If Luke's parents invested $13,500 in a long term bond that pays 12 percent interest compounded annually, what will be the approximate total amount of the investment 12 years later, when Luke is ready for college? Choose the correct choice from the following answers:
A) 62,000
B) 85,500
C) 95,500
D) 110,500
E) 100,000
Answer equals D in 48 years. I thought by 50th year it would reach 110,500. Options should have been separated more widely for clarity.
<result>D</result>
If money is invested at r percent interest, compounded annually, the amount of the investment will double in approximately 50/r years. If Luke's parents invested $13,500 in a long term bond that pays 12 percent interest compounded annually, what will be the approximate total amount of the investment 12 years later, when Luke is ready for college?