Question

Suppose you deposit $9000 in an investment account under effective annual interest rate of 10%. How long it takes to your money tripled if the interest compounded weekly?

Answer 1

To determine how long it takes for your money to triple with a 10% interest rate compounded weekly, you can use the formula for compound interest. By setting up the equation and solving for time, we find that it will take approximately 26.04 weeks for your money to triple.

Step-by-step explanation:

To determine how long it takes for your money to triple with an effective annual interest rate of 10% and compounded weekly, we can use the formula for compound interest:

Compound Amount = Principal Amount * (1 + (interest rate / number of periods)) ^ (number of periods * time)

Since we want the compound amount to be triple the principal amount, we can set up the equation:

$9000 * (1 + (0.10 / 52)) ^ (52 * time) = $27000

Simplifying the equation, we get:

1.0019^52t = 3

Using logarithms, we can solve for t:

t ≈ 26.04 weeks

Therefore, it will take approximately 26.04 weeks for your money to triple.