Answered

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How long must one wait (to the nearest year) for an initial investment of $1,000 to triple in value if the investment earns 8% compounded annually

Sagot :

Answer:

t = 14 years

Explanation:

The computation of the time period is shown below:

As we know that

Future value = Present value ×(1 + rate of interest)^time period

$3,000 = $1,000 × (1 + 0.08)^time period

3 = 1.08^time period

Now multiply log to both sides

So,

lof(3) ÷ log(1.08) = t

t = 14 years

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