To get the number of years it will take for the tuition fee to double we use the compound interest formula, this is given by:
FV=p(1+r/100)^n
where:
FV=future value
p=principle
r=rate
n=years
from the information given, we are required to solve for n given that:
FV=$20,000
p=$10,000
r=7%
thus plugging in the formula we shall have:
20000=10000(1+7/100)^n
solving for n we have:
2=(1.07)^n
introducing natural logs we get:
n=ln2/ln1.07
n=10.25 years
Answer: 10.25 years
