SOLUTION: Suppose you invest your money into an account that pays 5.4% per year compounded quarterly. How long (in years) will it take for your money to triple?
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Question 220671: Suppose you invest your money into an account that pays 5.4% per year compounded quarterly. How long (in years) will it take for your money to triple? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose you invest your money into an account that pays 5.4% per year compounded quarterly. How long (in years) will it take for your money to triple?
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Let "P" be the amount you invest.
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Equation:
3P = P(1 + (0.054/4))^(4t)
3 = (1.0135)^(4t)
Take the log:
4tlog(1.0135) = 3
4t = [log3/log1.0135]
4t = 81.93
t = 20.48
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The money should triple in the 21st year.
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Cheers,
Stan H.
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