Question

How long would it take to triple your money if the interest rate was:

5% compounded yearly

5% compounded monthly

5% compounded weekly

5% compounded continuously

Answer #1

IF initial amount be M, then

M x FVIF(r%, N) = 3 x M

FVIF(r%, N) = 3

(1 + r)^{N} = 3

(1) 5% compounded yearly: r = 5% = 0.05

(1.05)^{N} = 3

Taking natural logarithm on each side,

N x ln 1.05 = ln 3

N x 0.0488 = 1.0986

N = 22.51 years

(2) 5% compounded monthly: r = 5%/12 = 0.4167%

(1.004167)^{12N} = 3

Taking natural logarithm on each side,

12N x ln 1.004167 = ln 3

12N x 0.0042 = 1.0986

N = 22.02 years

(3) 5% compounded monthly: r = 5%/52 = 0.0962%

(1.000962)^{52N} = 3

Taking natural logarithm on each side,

52N x ln 1.000962 = ln 3

52N x 0.0010 = 1.0986

N = 21.97 years

(4) With continuous compounding at 5%,

Future value = Present value x e^{rN}

3 x M = M x e^{rN}

e^{rN} = 3

Taking natural logarithm on each side,

rN x ln e = ln 3

rN = 1.0986 [Since ln e = 1]

0.05 x N = 1.0986

N = 21.97 years

How long would it take for money to triple in value if
invested at:
a.9% compounded annually
b. 9% compounded monthly
b.12% compounded quarterly
c.12% compounded monthly

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.

How long will it take to double your money at 6% interest
compounded annually?

How long would it take a sum to double if the growth rate was 5%
per year?
How long would it take a sum to triple if the growth rate was 5%
per year?

How long will it take for money to tripe at a rate of 4.5%
compounded quarterly?

At 5 percent interest, how long does it take to double your
money? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
Length of time
years
At 5 percent interest, how long does it take to quadruple your
money? (Do not round intermediate calculations and round
your answer to 2 decimal places, e.g., 32.16.)
Length of time
years

Easy Bank offers you a monthly interest rate of 0.30% for
deposits, how long does it take to
a) double your money in years?
b) To triple it in years?

6. How long does it take to double your money at 10 percent
interest? How long does it take to quadruple your money?
Input area:
Output area:
Present value
Years
Interest rate
Future value
$
1.00
***?
10%
$
2.00
1.00
***?
10%
4.00

How long will it take a sum of money to double if interest is at
11% compounded semiannually?

How long would it take for $1000 to grow to in an account paying
3.6% interest compounded monthly?

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