Janice has $5,000 invested in a bank that pays 11.0% annually.How long will it take for her funds to triple?

Question

Quizplus · Accepted Answer

To find the time it takes for an investment to triple at a given interest rate, we can use the Rule of 72, which is a simplified formula to estimate the number of years required to double the investment. However, for tripling, we can use the formula for compound interest: $ A = P(1 + r)^t $. Here, $ A = 3P $, $ r = 0.11 $, and $ P = 5000 $. Solving $ 3 = (1.11)^t $ gives approximately 10.53 years.

Janice Has $5,000 Invested in a Bank That Pays 11