How long will it take a sum of money to triple if it is invested at 10 % compounded daily? Round to the nearest hundredt

Question

How long will it take a sum of money to triple if it is invested at
10
%
compounded daily? Round to the nearest hundredth of a year.

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Genesis 2 months 2021-09-07T16:10:08+00:00 1 Answer 0

Answers ( )

    0
    2021-09-07T16:11:49+00:00

    Answer:

    11.64 years

    Step-by-step explanation:

    A = P(1+r/n)^nt

    r = interest rate in decimals

    t = time in years

    n = number of times compounded per year

    A = future amount

    P = initial amount

    We are given that our money will triple so we can let A = 3x if we let P = x

    r = 0.1

    n = 1

    then we can write

    3x = x(1+(0.1/1))^1t

    3x = x (1.1)^t

    3 = 1.1^t (divide both sides by x)

    take log of each side

    log 3 = log 1.1^t

    log 3 = t*log(1.1)

    t = log 3 / log(1.1)

    t = 11.64 years

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