Question

Wendy has $23,000.00 invested in a bank that pays 11.75% annually. How long will it take for her funds to triple? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72

A.9.10 Years
B.12.36 Years
C.9.89 Years
D.12.06 Years
E.7.81 Years

Answer 1

To find how long it will take for Wendy's funds to triple, we can use the compound interest formula.

Step-by-step explanation:

To find how long it will take for Wendy's funds to triple, we can use the compound interest formula. The formula is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, Wendy has $23,000 and the bank pays an annual interest rate of 11.75%. So, the equation becomes 3 * 23,000 = 23,000(1 + 0.1175/1)^(1*t). We want to find t, so we can rearrange the equation: 3 = (1.1175)^t. To solve for t, we can take the log base 1.1175 of both sides: t = log(3)/log(1.1175). Using a calculator, we find t ≈ 9.10 years. Therefore, it will take approximately 9.10 years for Wendy's funds to triple.