SOLUTION: Please help me solve this problem:
Using the formula for compound interest, A=P(1+i)^n , how long would it take an investment of $10,000, at an annual interest rate of 7% per ye
Algebra ->
Finance
-> SOLUTION: Please help me solve this problem:
Using the formula for compound interest, A=P(1+i)^n , how long would it take an investment of $10,000, at an annual interest rate of 7% per ye
Log On
Question 1026215: Please help me solve this problem:
Using the formula for compound interest, A=P(1+i)^n , how long would it take an investment of $10,000, at an annual interest rate of 7% per year, compounded quarterly, to triple?
The amount of the original investment is immaterial. For a given annual interest rate and compounding frequency, it takes just as long for 10 cents to triple as it does $10K. That's because, in order for the investment to triple,
7% per annum is 1.75% per quarterly compounding period, so
The rest is just calculator work. Remember, is the number of compounding periods it takes for the investment to triple, so divide by 4 to get the number of years. Round up.
John
My calculator said it, I believe it, that settles it
