Question

in how many years does a certain sum amount to 3 times the principal at the rate of 16 2/3%?

Answer 1

Answer:

First of all, 16 ⅔ % = 1/6

So you are compounding at a rate of 1 + 1/6 = 7/6 per year.

You must solve (7/6)^n = 3 for n.

Taking the log of both sides

log (7/6)^n = log 3

n log(7/6) = log 3

n(log 7 - log 6) = log 3

n = (log 3) / (log 7 - log 6) This is the exact answer.

Rounding to three decimal places, n = 7.127 years