Finance
posted by Anonymous .
A financial analyst tells you that investing in stocks will allow you to triple your money in 15 years. What annual rate of return is the analyst assuming you can earn?

(1+i)^15 = 3
log both sides
log((1+i)^15) = log3
15 log (1+i) = log3
log 1+i = log3/15
1+i = 1.07598
i = .07598
You would have to earn about 7.6 % a year to triple your money in 15 years
Respond to this Question
Similar Questions

Finance Management
How do I solve this problem using net present value and internal rate of return methods? 
Finance for decision makers
Joe Nautilus has $120,000 and wants to retire. What return must his money earn so he may receive annual benefits of $20,000 for the next 14 years. a) 12% b)Between 12% and 13% c) 14% d) Greater than 15% 
Finance.
Anthony is asking you to invest in a venture that will double your money in 3 years. Compute the annual rate of return they are promising you? 
personal finance
Brenda has received a $10,000 gift from her mother and is trying to decide how to invest it.She thinks she would like to invest it in stocks because she knows that stocks have been earning about 10%rate of interest over the last several … 
Math
You are a share analyst for an investment firm and are investigating the return on shares in the Eastern Mining Corporation over the last four years. The return on Eastern Mining Corporation shares over the last four years is presented. … 
stats
You are a share analyst for an investment firm and are investigating the return on shares in the Eastern Mining Corporation over the last four years. The return on Eastern Mining Corporation shares over the last four years is presented. … 
adult education
You are a share analyst for an investment firm and are investigating the return on shares in the Mean Corporation over the last four years. The return on Mean Corporation shares over the last four years is presented. Calculate the … 
financial management
Your investment adviser has sent you three analyst reports for a young, growing company named Vegas Chips, Incorporated. These reports depict the company as speculative, but each one poses different projections of the company’s future … 
Finance question
Suppose CAPM is true. You are considering investing in an equally weighted portfolio of two stocks, A and B. The betas of these stocks to the market factor are 1.10 and 0.80, respectively. The total return volatilities of stocks A … 
math
Barry heard in his Personal Finance class that he should start investing as soon as possible. He had always thought that it would be smart to start investing after he finishes college and his salary is high enough to pay the bills …