In its first 10 years a mutual fund produced an average annual return of 20.4420.44 %. Assume that money invested in this fund continues to earn 20.4420.44 % compounded annually. How long will it take money invested in this fund to double?

3.73 years or 4 years approx

Explanation:

The computation of the number of years taken for money invested for double is shown below:

As we know that

Amount = Principal * (1 + interest rate : time period) ^interest rate * time period

where,

We assume the principal be P

And, the amount is 2P

And, the other values would remain the same

So,

2P = P (1 + 0.2044 : time period) ^ 1 * time period

2 = (1.2044) ^ time period

Now take the log both sides

ln2 = ln (1.2044) ^time period

ln2 - time period ln (1.2044)

So,

time period = ln (2) : ln (1.2044)

= 3.73 years or 4 years approx