SOLUTION: Joe decides to invest USD 5400 in an account with a 2.4% nominal annual interest rate. Given that the interest is compounded monthly, find the minimum number of years that it wi

Question 1171745: Joe decides to invest USD 5400 in an account with a 2.4% nominal annual interest rate.
Given that the interest is compounded monthly, find the minimum number of years that it will take for Joe 's investment to triple . Give your answer correct to the nearest year.

Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
There is a rule of 110 for tripling that would suggest 110/2.4=45.83 years.
That comes from ln 3=1.0986 which is 110 when converted to per cent.
P=Po(1+0.024/12)^12n
P/Po=3
so 3=1.002^12n
ln 3=12n ln 1.002
12n=549.86. That is the number of months
n=45.82 years in close agreement with the above.
Answer is 46 years.
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