SOLUTION: For how many months do you need to invest your money into a bank account earning an annual interest rate of 11.94% compounded monthly if you want to triple your investment?

Question 1060860: For how many months do you need to invest your money into a bank account earning an annual interest rate of 11.94% compounded monthly if you want to triple your investment?
Answer by jorel555(1290) (Show Source): You can put this solution on YOUR website!
As a general formula, compound interest can be calculated at A=P(1+r/n)^nt, where A is the total amount yielded, P is the amount deposited, r is the annual interest rate, n is the amount of compounding periods per year, and t is the number of years to maturity. In this case, we have 11.94% annual interest compounded monthly; our principal is 1, and our total amount is 3. So:
3=(1+.1194/12)^12t
3=(1.00995)^12t
The answer seems to be around 111 compounding periods, or about 9-1/4 years. ☺☺☺☺
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