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If you earn 8% per year on your bank account, how long will it take an account with $250 to triple to $750

1 Answer

5 votes

Answer:t = 14.27 years

Step-by-step explanation:

Using FV = PV × (1 + r)t

where

FV=future value

PV=present value

r=rate of interest

t=time period.

$750 = $250 × 1.08t

1.08t = 750/250

1.08t=3

t × ln1.08 = ln3

t = ln3 / ln1.08

t=1.09861229/0.0769610411

t = 14.27 years

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