SOLUTION: Please help me solve this word problem: Jordan is lookimg for long term investment which will triple the value of her portfolio every 14 years. What annual rate of return would be

Question 1116590: Please help me solve this word problem:
Jordan is lookimg for long term investment which will triple the value of her portfolio every 14 years. What annual rate of return would be needed to accomplish this? First convert your answer to a percent. Then round to the nearest tenth of a percent.
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

The statement of the problem says nothing about the kind of interest; so I will assume interest is compounded annually.

If the annual interest rate is x (written as a decimal), then the growth factor each year is (1+x). She wants the compounded growth factor over 14 years to be 3. So

= 1.0816334 to several decimal places

Rounded to one decimal place, the required interest rate is 8.2%.
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