Solve the problem.
-You have money in an account at an APR of 5% compounded annually. To the nearest year, how long will it take for your money to triple?

Question

Quizplus · Accepted Answer

To find the number of years it takes for an investment to triple with an annual interest rate of 5%, you can use the formula for compound interest: $A = P(1 + r)^t$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (the initial amount of money), $r$ is the annual interest rate (decimal), and $t$ is the time the money is invested for in years. To triple the money, $A = 3P$, so $3P = P(1 + 0.05)^t$. Simplifying, we get $3 = (1.05)^t$. Solving for $t$, we use logarithms: $t = \log_{1.05}3$, which approximately equals 22.52 years. Rounding to the nearest year gives 23 years.

Solve the Problem. -You Have Money in an Account at an APR of an APR