SOLUTION: If you have 5,000 invested in a bank that pays 5.2 percent annually. How long will it take for your funds to triple?

SOLUTION: If you have 5,000 invested in a bank that pays 5.2 percent annually. How long will it take for your funds to triple?

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Question 465812: If you have 5,000 invested in a bank that pays 5.2 percent annually. How long will it take for your funds to triple?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

The formula for compound interest is:

where

is the future value,

is the present value,

is the annual interest rate expressed as a decimal,

is the number of compounding periods per year, and

is the number of years.

In this case we really don't care what the present or future values are so long as the future value is three times the present value, so we can re-write the formula:

We are given both

and

, so substitute the values:

The only thing left is to take the logarithm of both sides (any base, it doesn't matter in the end) and solve for

Write back and let me know what you get for an answer.

John

My calculator said it, I believe it, that settles it

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