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.

Related questions
See all questions in Applications of Exponential Functions
Impact of this question
81474 views around the world
You can reuse this answer
Creative Commons License