# Math

posted by .

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?

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 -

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.

## Similar Questions

1. ### math

Jim wants to deposit money in an account to save for a new stereo system in two years. He wants to have \$4,000 available at the time. The following rates are available to him: 6.2% simple interest 6.1% compounded annually 5.58% compounded …

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?
3. ### Algebra 2

You have \$2500 to invest at 6% interest compounded quarterly. For how many years will the money need to be invested for that amount to triple?
4. ### math

you invest \$10,000 in a savings account that pays 6.6%, compounded quarterly for 15 years. How much money is in the account in 15 years?
5. ### finance

Suppose you pay \$1000 into a savings account that pays 2% per year, compounded annually. How many years will would it take for the money in the account to double, to \$2000?
6. ### Math help

You plan to make 24 equal quarterly payments (payments are at the end of each period) into an account to pays 8% (per year compounded quarterly). If you need \$5,000 at the end of 10 years (i.e. 4 years after the last payment is made …
7. ### algebra

You deposit \$3000 in an account earning 7% interest compounded continuously. The amount of money in the account after years is given by A(t)=3000 e^(0.07 t) . How much will you have in the account in 5 years?
8. ### Math

Can anybody show me step by step pls? A man invests \$3000 in an account that pays 7.5% interest per year, compounded quarterly. 1. Find the amount after 3 years?
9. ### Precalc

suppose you want to invest \$60,000 for ten years. You can invest your money in a CD that earns 4% interest, compounded quarterly and has no risk, or you can invest your money in futures that ear 10% interest, compounded quarterly. …
10. ### algebra

Compound interest word problem. Suppose JJ has \$1000 that he invests in an account that pays 3.5% interest compounded quarterly. How much money does JJ have at the end of 5 years?

More Similar Questions