If money is invested in a savings account earning 44 compou

If money is invested in a savings account earning 4.4 % compounded quarterly, how many years will pass until the money triples? Round your answer to one decimal place

Solution

R=4.4%=.044

Let initially the amount be x. And after t years the amount be 3x

Using compound interest formula which is

A=P(1+R/n)^n*t

in case of compounded quarterly , n=4

3x=x(1+ .044/4)^4t

3= 1.011^4t

taking log on both sides

log 3= 4t log 1.011

4t= 100.42

t=25.1 yrs