A bank offers a monthly interest rate of 104 compounded mont

A bank offers a monthly interest rate of 1.04% compounded monthly. How long (in months) will it take for an investment to triple? Enter your answer as an integer.

Solution

Answer

n=log(FV/PV)/log(1+i)

FV/PV=3........becuase the amount increases 3 times

i=1.0104

n=log(3)/log(1.0104)

=106.184156

The amount will triple in 106.18 months