Question

How long will it take money to triple at an APR of

6.3

​%

compounded​ annually?

It will take

______

years to triple an amount of money earning

6.3

​%

compounded annually.

Answer 1

The compond interest formula:

A = The final amount of money ------- It is triple of intial amount therefore 3 * P

P = Initial amount----- is taken as P

r = annual rate of interest given 6.3 %

n = number of times interest is compunded in a year given as annualy compounded therefore 1

t = the number of years ----- This is to be found

Now by applying the given details into the formula

years

17.98 years which can be approximately rounded to 18 years

Therefore the period money takes to triple if compounded annualy at APR 6.3% Is 17.98 years approximately rounded to 18 years.