How long will it take you to triple your money if you invest it at a rate 6% compounded annually?

1 Answer
Apr 2, 2015

It will approximately take 18 years 10 months.

The compound interest formula is:

A = P * (1 + (r/n))^(nt)

Where:

P is the initial amount
r is annual rate of interest
t is number of years
A is the final amount of money
n is the number of times the interest is compounded per year

Source of Formula

So we want to find t. Lets start

3 * P = P * (1 + 0.06)^t
3 = 1.06^t

Now we should use logarithmic functions.

ln(3) = t * ln(1.06)

ln(3)/ln(1.06) = t

t = 18.85

So the answer is approximately 18 years 10 months.