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...
- finance - Suppose you pay $1000 into a savings account that pays 2% per year, ...
- algebra - You deposit $3000 in an account earning 7% interest compounded ...
- Math - Can anybody show me step by step pls? A man invests $3000 in an account ...
- math - Jim wants to deposit money in an account to save for a new stereo system ...
- Algebra 2 - You have $2500 to invest at 6% interest compounded quarterly. For ...
- Precalc - suppose you want to invest $60,000 for ten years. You can invest your ...
- Math help - You plan to make 24 equal quarterly payments (payments are at the ...
- math - you invest $10,000 in a savings account that pays 6.6%, compounded ...
- Math - You plan to make 24 equal quarterly payments (payments are at the end of ...

More Related Questions