SOLUTION: An investment earns 2.25% per annum compounded daily. How many years would be required for an investment to triple in value? Assume all years have 365 days.
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Question 915655: An investment earns 2.25% per annum compounded daily. How many years would be required for an investment to triple in value? Assume all years have 365 days.
I am struggling to grasp this one... please explain and show work!
Thanks so much for the help! Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! An investment earns 2.25% per annum compounded daily. How many years would be required for an investment to triple in value? Assume all years have 365 days.
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A(t) = P(1+(r/n))^(nt)
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Your Problem
3P = P(1+(0.0225/365))(365t)
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(1+0.0000616)^(365t) = 3
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Take the log of both sides to get:
(365t) = log(3)/log(1.0000616)
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365t = 17835
t = 48.86 years
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Cheers,
Stan H.
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