Homework Help: Math

Posted by Tina on Friday, July 22, 2011 at 11:34am.

Suppose you invest your money into an account that pays 4.0% per year compounded quarterly. How long (in years) will it take for your money to triple?

Round your answer to one decimal place.

I know I use this...
A=P(1+r/n)^nt

But to go from there and get an answer, so confused. Thank you for your help!

Math - Henry, Friday, July 22, 2011 at 1:26pm
Eq1: Pt = Po(1+r)^n.
Eq2: Pt = 3Po.

r = (3mo./12mo.) * 4% = 1% = 0.01 =
Quarterly int rate expressed as a decimal.

n=4 comp./yr * t yrs.=4tcomp. periods.

In Eq1,substitute 3Po for Pt:
3Po = Po(1.01)^4t,
Divide both sides by Po:
(1.01)^4t = 3,
Take Log of both sides:
4t*Log(1.01) = Log3,
4t = Log3 / Log(1.01) = 110.41,
t = 27.6 yrs.

Answer this Question

Related Questions

MATH, PLEASE HELP! - Suppose you invest your money into an account that pays 4.0...
math - if you invest 500 dollars in a savings account that pays 8% interest per ...
Math - A woman has a total of $9000 to invest. She invests part of the money in ...
math - A woman has a total of $9,000 to invest. She invests part of the money in...
math - ...A woman has a total of $9,000 to invest. She invests part of the ...
math - Jim wants to deposit money in an account to save for a new stereo system ...
math - you invest $10,000 in a savings account that pays 6.6%, compounded ...
math - earn interest - invest money that pays 6.3% interest/year compounded ...
economics - An accountant deposits 100 per month into an account that pays 8% ...
Math - If I got an income tax refund of $650 and invest the money in an account ...

For Further Reading

First Name:
School Subject:
Answer: