Question 1162508: what rate of interest compounded annually is required to triple an investment in 22 years? Found 2 solutions by ankor@dixie-net.com, MathTherapy:Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! what rate of interest compounded annually is required to triple an investment in 22 years?
:
let r = interest rate in decimal form
let original investment = 1, the resulting amt = 3 = 3
using common logs
log equiv of exponents
22*log(1+r) = log(3)
22*log(1+r) = .477
log(1+r) =
log(1+r) = .0217
Antilog
1 + r = 1.0512
r = 1.0512 - 1
r = .0512 which is 5.12 %
;
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Check on your calc: enter 1.0512^22 = 2.9997 ~ 3
