Business Maths - Do we round up to keep a situation logical or round down numerically?
For example:
The number of years required for $9,000 to double in value when invested at 6.3% compound interest, where interest is paid monthly is closest to -
A: 8
B: 9
C: 10
D: 11
E: 12
So I chose E. Solving for n in the compound interest formula will give you n=132.374 [months]. Converting this to years will give 11.0312 years. If only 11 years past, there will be slightly less than 18,000 so therefore there has to be 12 years for there to be 18,000.
So, in a VCAA exam, should I be rounding up or down? I know they are written a lot better than a lot of other companies, so how should I go about it logically? (Kilbaha said I was wrong in this particular question, I've had a few Neap like this which I've gotten wrong because they rounded down.)