Compounding interest question?

[JohnnyMichaels]

Hong long will it take $10,000 to grow to $40,000 if the investment earns interest at the rate of 6% per year compounded daily?

 

[QuatuorM]

Use the rule of 70 get a rough estimate:

Rule Of 70 Definition

70/6 = 11.67 years

I used a spreadsheet to calculate the exact number of years.

The answer is 24 years.

 

[QuatuorM]

wait... did you say compounded daily?

I don't know any financial institution which provides daily interest. Most calculate interest at the end of the year, a few offer monthly interest.

Where did you hear about this?