Question

Republic Finance offers money at 1.27% per month compounded monthly. How many YEARS will it take...

Republic Finance offers money at 1.27% per month compounded monthly. How many YEARS will it take for an investment to triple? (Your answer can be a decimal.)

Homework Answers

Answer #1

The company has a offer where money is paid an interest rate at 1.27% per month compounded monthly. Find the number of YEARS = N it takes for an investment to triple by considering the initial amount to be P. Since interest rate is already given per month and compounding is done monthly, the effective rate per month is unchanged at 1.27% per month. Yearly interest rate is (1 + 1.27%/1)^12 - 1 = 16.3509%

3P = P(1 + 16.3509%)^N

ln (3) = N x ln (1.163509)

N = ln(3)/ln(1.163509)

= 7.25

Approximately it will take 7.25 or 8 years to tripple the investment.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investment grows at 24% compounded monthly. How many years will it take to do the...
An investment grows at 24% compounded monthly. How many years will it take to do the following? (Round your answers to one decimal place.) (a) double ______yr (b) increase by 45% _______ yr
How long will it take money to triple at an APR of 6.3 ​% compounded​ annually?...
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 would it take to triple your money if the interest rate was: 5% compounded...
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
How long would it take for money to triple in value if invested at: a.9% compounded...
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
1, How many years will it take to pay off a car loan of $25,703 at...
1, How many years will it take to pay off a car loan of $25,703 at an annual rate of 12.38% compounded monthly if you make monthly payment of $614? Please round your answer to the second decimal. e.g. 1.11 2. You are saving money to travel around the globe. You've taken your first job and you plan to save $434 each month into the bank account that pays 7.37% compounded monthly for the next three years for your grad...
Easy Bank offers you a monthly interest rate of 0.30% for deposits, how long does it...
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?
An investment offers to triple your money in 5 years. What rate per year are you...
An investment offers to triple your money in 5 years. What rate per year are you being offered?
Q3) How many years would it take an investment of $333 to grow to $10,789 at...
Q3) How many years would it take an investment of $333 to grow to $10,789 at an annual rate of return of 11.00%? Q4) How much money would you need to deposit today at 23.00% annual interest compounded monthly to have $26,802 in the account after 13 years? Q5) If you deposit $729 into an account paying 15.00% annual interest compounded quarterly, how many years until there is $37,847 in the account? Q6) If you deposit $21,114 at 06.00% annual...
Time value of money How many years your money will be doubled by using the compounded...
Time value of money How many years your money will be doubled by using the compounded interest method if the interest rate is 8%? How many years your money will be doubled by using the simple interest method if the interest rate is 8%? Did your answer for a and b different? Why?
For how many months do you need to invest your money into a bank account earning...
For how many months do you need to invest your money into a bank account earning an annual interest rate of 11.5% compounded monthly if you want to triple your investment? months (Note: Your answer should be an integer)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT