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5 votes
How many years would it take for money to increase to 3 times the initial amount at an interest rate of 18% per year?

User Luie
by
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1 Answer

5 votes

Answer:

7 years (to the nearest year)

Step-by-step explanation:

Given that;

A = amount

P= principal

t = time

r = rate

A =3P(given in the question)

Formula for compound interest;

A = P(1 + r)^t

Substituting values;

3P = P(1 + 18/100)^t

3P/P= (1.18)^t

3 = (1.18)^t

log 3 = t log 1.18

t = log 3/log 1.18

t = 0.4771/0.0719

t = 6.6 years

t = 7 years (to the nearest year)

User Nrz
by
6.8k points