Question
How long does it take approximately for money to triple in value if you earn 8%? a. 8 Years and 7 months b. 9 years c. 14 years d. 22 years and 6 month
Answer
1 year and 5 months approximately
- Q: What formula can be used to calculate the approximate time it takes for money to triple in value? A: The formula to calculate the approximate time it takes for money to triple in value is T ≈ 11.1 / r, where T is the time in years and r is the interest rate as a percentage, assuming the interest is compounded annually.
- Q: So what is the approximate time it takes for money to triple in value at a rate of 8%? A: T ≈ 11.1 / 8 = 1.3875 years, which is equal to 1 year and 5 months approximately.