How long will it take you to triple your money if you invest it at a rate 6% compounded annually?

1 Answer
Joe D.
Apr 2, 2015

It will approximately take 18 years 10 months.

The compound interest formula is:

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

Where:

#P# is the initial amount
#r# is annual rate of interest
#t# is number of years
#A# is the final amount of money
#n# is the number of times the interest is compounded per year

Source of Formula

So we want to find #t#. Lets start

#3 * P = P * (1 + 0.06)^t#
#3 = 1.06^t#

Now we should use logarithmic functions.

#ln(3) = t * ln(1.06)#

#ln(3)/ln(1.06) = t#

#t = 18.85#

So the answer is approximately 18 years 10 months.

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