Question

We sometimes need to find how long it will take a sum of money to grow to some specified amount.  For example, if a company’s sales are growing at a rate of 20% per year, approximately how long will it take sales to triple?

Answer 1

We can compute the amount of time it takes to triple the sales with time value of money equation:

where,

g = growth rate i.e 20%

n = years

taking log both side

So. It takes approx 6 years to triple sales.