SOLUTION: You want to purchase a boat but you need $45000.If you could invest your entire saving of $15000 at an annual interest rate of 15% compounded annually, how long would you have to w

Question 1051347: You want to purchase a boat but you need $45000.If you could invest your entire saving of $15000 at an annual interest rate of 15% compounded annually, how long would you have to wait until you have accumulated enough money to buy the car?
Answer by jorel555(1290) (Show Source): You can put this solution on YOUR website!
If the boat costs $45000, and you have $15000, then you need to triple your money. Using the equation (1+r)^n as your total after n compounding periods, we get:
(1+.15)^n=3
1.15^n=3
1.15=3^1/n
n= approximately 8 years needed to buy the boat.
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