in what time will money triple itself, if the rate of simple interst is 10% per year?
Answers
Answer:
compound rate of interest expressed as a percentage shows the cumulative amount that an invested sum of money will increase per annum.
Hence, 10 percent tells us that, after every 1 year, the amount of money in the account will increase by 110 th (or 1.1 times) of the present amount.
Take the amount in the account now to be X and the amount required to be 3X . We know that the value of a principal (initial) investment P with interest rate R after some time (years) t will become some new amount A , as demonstrated by the following relationship:
A=P(1+R)t
This formula makes more sense when you realise that it is just multiplying the initial amount continuosly by 1.1 the amount of years it has been kept invested. Hence:
3X=X(1+0.1)t
3=1.1t
T=log1.13
Thus, finally:
t=11.53
Therefore, 11.53 years.
HOPE IT HELPS!!!
Answer:
in 20 years
money triple thats amount is 100 so sum of money is 300
300-100 = 200 is intrest
200/10 = 20 years