Ask Question
25 May, 08:49

Consider a $100 investment earning 12% compounded quarterly. how long will it take to triple your money? round your answer to the nearest tenth of a year.

+2
Answers (1)
  1. 25 May, 09:27
    0
    Summarizing the question,

    Principle (P) = $100

    Rate (r) = 12%=0.12

    Amount (A) = 3*P=$300

    Time=t=?

    n=no of times the interest is compouned per year=4

    Then,

    A=P{ (1+r/n) }^ (n*t)

    or, 300=100*{1+0.12/4}^ (4*t)

    or, 300/100 = (1+0.03) ^ (4*t)

    or, 3=1.03^ (4*t)

    Taking log on both sides,

    log3=log[ (1.03) ^ (4*t) ]

    or, log3 = (4*t) * log (1.03)

    or, 4t=log3/log (1.03)

    or, t=log3/[4*log (1.03) ]

    or, t=9.29175 ...

    t=9.3 years ANS!
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Consider a $100 investment earning 12% compounded quarterly. how long will it take to triple your money? round your answer to the nearest ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers