How many years will it take to triple 2500 at 6% interest compaunded annually?
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Hi Nami.
The compound interest formula is:
A = Pert
Where A is the current value, P is the initial investment, r is the rate, and t is time.
If an investment triples, that means A is currently equal to 3*P
Your interest rate is 5%, or, 0.05
So
3P = Pe0.05*t
3 = e0.05t
ln(3) = 0.05*t
t = ln(3)/0.05
t = ~22 years
Hope this helps.
The compound interest formula is:
A = Pert
Where A is the current value, P is the initial investment, r is the rate, and t is time.
If an investment triples, that means A is currently equal to 3*P
Your interest rate is 5%, or, 0.05
So
3P = Pe0.05*t
3 = e0.05t
ln(3) = 0.05*t
t = ln(3)/0.05
t = ~22 years
Hope this helps.
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