If sales grow at 20% per year, how long before sales double?

Solve for n:

FVn = 1(1 + i)n

2 = 1(1.20)n

(1.20)n = 2

n ln (1.20) = ln 2

n(0.1823) = 0.6931

n = 0.6931/0.1823 = 3.8 years.

Previous slide

Next slide

Back to first slide

View graphic version