Question

an effective annual interest rate of 12.95% how many years will it take a given amount to Triple in value

Answer 1

Number of year n = 9 year (Approx)

Step-by-step explanation:

Given:

Effective annual interest rate = 12.95% = 0.1295

Find:

Number of year n

Assume;

Invested = P

Amount = 3P

So,

3P = P(1+0.1295)ⁿ

3 = 1.1295ⁿ

n = 9

Number of year n = 9 year (Approx)