At 6 percent compounded monthly,how long will it take to triple your money?
A) 221 months
B) 175 months
C) 102 months
D) 48 months

Question

Quizplus · Accepted Answer

To determine how long it will take to triple your money with an interest rate of 6 percent compounded monthly, you can use the formula for compound interest: $A = P(1 + \frac{r}{n})^{nt}$, 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), $n$ is the number of times that interest is compounded per year, and $t$ is the time the money is invested for in years. To triple your money, $A = 3P$, and we solve for $t$ when $r = 0.06$ and $n = 12$. Rearranging the formula and solving for $t$ gives a value that rounds to approximately 221 months.

At 6 Percent Compounded Monthly,how Long Will It Take to Triple