It takes 5.34 years for money to triple in value when invested at 8% per annum.

Question

Quizplus · Accepted Answer

The correct formula to calculate the number of years it takes for money to triple in value is:
t = ln(3) / ln(1 + r)
where t is the number of years, r is the annual interest rate as a decimal, and ln represents the natural logarithm function. Plugging in the given values, we get:
t = ln(3) / ln(1 + 0.08) ≈ 14.21 years
Therefore, the statement is false.

It Takes 5