Jane has $5,000 invested in a bank that pays 4% compounded annually. It will take her approximately 28 years for her funds to triple.

Question

Quizplus · Accepted Answer

Using the compound interest formula, we can set up the equation:
$5,000(1+0.04)^{28} = 3(5,000)
Solving for the left side results in approximately $15,085. Since this is slightly more than triple the initial investment of $5,000, it is reasonable to say that it will take approximately 28 years for Jane's funds to triple. Therefore, the statement is true.

Jane Has $5,000 Invested in a Bank That Pays 4