Answer:
The question is incomplete, so I looked for a similar one:
"Kant Miss Company is promising its investors that it will double their money every 3 years. What annual rate is Kant Miss promising? Is this investment a good deal? If you invest $300 now and Kant Miss is able to deliver on its promise, how long will it take your investment to reach $26 comma 000?"
Since the number of years is very small, both the rule of 70 or 72 will not be very accurate. If you use the rule of 70 the answer is 23.33% and using the rule of 72 the answer is 24%, but both are wrong. In order to determine the correct interest rate you must solve the following:
2 = (1 + i)³
∛2 = ∛(1 + i)
1.2599 = 1 + i
i = 25.99%
If this deal was not a scam or a fraud, then it would be a great opportunity, but sometimes such great opportunities are generally false or simply an illusion (due to extremely high risk).
In order to determine how long it would take for $300 to turn into $26,000, we can use the future value formula:
26,000 = 300 x 1.2599ⁿ
1.2599ⁿ = 86.667
n = log 86.667 / log 1.2599 = 1.9379 / 0.1003 = 19.32 years
