Question & Answer: A capital investment firm placed $1.5 million 2 years ago to acquire part-ownership in an…..

1.20 A capital investment firm placed S1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How long will it take from the date of their initial investment for their share of the chip company to be worth S3 million, if the company is realizing a 20% per year return?

A capital investment firm placed $1.5 million 2 years ago to acquire part-ownership in an innovative chip making company. How long will it take from the date of their initial investment for their share of the chip company to be worth $3 million, if the company is realizing a 20% per year return?

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Assuming compounded return per year and 20% return per year. it will take 4 years from the date of original investment to become $ 3 million.

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