SOLUTION: How long will it take for any amount of money to triple if invested at 6% annual interest and compounded quarterly and compounded monthly. I set it up 3=1(1+(.06/4)^4t

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Question 541872: How long will it take for any amount of money to triple if invested at 6% annual interest and compounded quarterly and compounded monthly. I set it up 3=1(1+(.06/4)^4t
Answer by solver91311(24713) About Me  (Show Source):
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Ok, that is the correct set up for the 'compounded quarterly' scenario.



Do the indicated arithmetic and then take the log of both sides (any base, doesn't matter)



Use



to write:



Then a little straight-up algebra:



The monthly one works out the same way except that you start with:



And end up with



Both of them are 18+ years, but the more frequent compounding gets you to your goal about 30 days earlier.

The reason that the logarithm base doesn't matter is that



for all real and

John

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