Question 330729: How long would it take an investment of $12,225 at 3 3/4% interest compounded quarterly to triple?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! How long would it take an investment of $12,225 at 3 3/4% interest compounded quarterly to triple?
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A(t)=Ao(1+(r/n))^(nt)
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3(12225)= 12225(1+(0.0375/4))^(4t)
(1+0.0094)^(4t) = 3
Take the log of both sides and solve for "t":
(4t) = log(3)/log(1.0094)
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4t = 117.4221
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t = 29.35
Rounding up you get: t = 30 years
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Cheers,
Stan H.
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