The duration to triple the amount.Given: Interest is 8\% compouned annually.

ediculeN 2021-08-22 Answered
The duration to triple the amount.
Given: Interest is 8% compouned annually.
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Expert Answer

2abehn
Answered 2021-08-23 Author has 88 answers
Calculation:
Let the present value be P.
Then future value will be 3P.
Write the expression to calculate the future value.
F=P(1+i)n .......(I)
Here, the future value is F, the present value is P, the rate of interest is i and the time period is n.
Substitute P for P, 3P for F and 0.08 for i in Equation (I).
3P=P(1+0.08)n
3=(1.08)n
Solve for the value of n.
n=14.27 years.
Conclusion:
Thus, the correct answer is option (b) 14.27 years.
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