Question 890879: How many years would it take you to triple your investment if your money compounds monthly at an annual rate of 5%? Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! How many years would it take you to triple your investment if your money compounds monthly at an annual rate of 5%?
.
compound interest formula:
A = P(1 + i/n)^(nt)
substitute values given:
3P = P(1 + .05/12)^(12t)
dividing both sides by P:
3 = (1 + .05/12)^(12t)
3 = (1 + 0.00416666666666666666666666666667)^(12t)
3 = (1.00416666666666666666666666666667)^(12t) == 12t
264.21587475470292707427548409693 = 12t
22.02 years = t
