ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How years will it take Mrs. Earnheart to more than triple an investment of $5, 000 at an interest rate of 4% compounded annually?
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27
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28
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29
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30
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Explanation:
Detailed explanation-1: -Answer and Explanation: The calculated value of the time required to triple the money is 22.517 years.
Detailed explanation-2: -Thus, it will take 18.36 years.
Detailed explanation-3: -So the answer is approximately 18 years 10 months.
Detailed explanation-4: -The rule of 115 is similar in that it estimates how long it takes an investment to triple in value. Rule of 115: If 115 is divided by an interest rate, the result is the approximate number of years needed to triple an investment.
There is 1 question to complete.