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Andreyy89
3 years ago
8

How long will it take your money to triple if you receive 10% return on your money, compounded annually?

Business
1 answer:
vovangra [49]3 years ago
8 0

Answer:

11.6 years

Explanation:

When we are trying to determine how long will it take an investment to double using compound interest, the simplest way is to use the rule of 72. But the problem is that it doesn't work very well with odd numbers.

So we have to use math:

FV = PV (1 + r)ⁿ

PV = X     and  FV = 3X

3X = X(1 + 10%)ⁿ

3 = (1 + 0.1)ⁿ

log 3 = log 1.1ⁿ

log 3 = n x log 1.1

n = log 1.1 / log 3

n = 11.6 years

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7 0
3 years ago
Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. S
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Answer: $42

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2 years ago
Total assets are $1,450, fixed assets are $790, long-term debt is $750, and short-term debt is $300. What is the amount of curre
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= Total assets - fixed assets

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3 years ago
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2 years ago
Select the best answer for the question.
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