Answered

Henry is investing at a continuously compounded annual interest rate of 4.4%. How many years will it take for the balance to triple? Round your answer up to the nearest whole number, and do not include units in your answer.

Answer :

The number of years it would take the amount to triple is 25 years.

The formula that would be used to determine the number of years it would take the balance to triple is:

FV = PV  x [tex]e^{r}[/tex]N

Where:

  • n = number of years
  • fv = future value
  • PV = present value
  • e = 2.7182818
  • r = interest rate

3 = [tex]e^{0.044}[/tex]N

Take the log of both sides

log(3) / log(e) /  (0.044) = 25 years

A similar question was answered here: https://brainly.com/question/7133042

Other Questions