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9 August, 23:06

An investor deposits? $2000 in a mutual fund that returns 7?% at the end of 1 year. determine the length of time required for the investment to tripletriple its value if the annual rate of return remains the same.

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  1. 9 August, 23:10
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    The length of time required for the investment to triple its value if the annual rate of return remains the same is 16.23 years assuming the investor gets a compounded return. If the investor gets a simple return then the length of time required for the investment to triple its value is 28.57 years. The length with a compounded interest calculation: 16.23 = log (1+7%) (6000/2000). The length with a simple interest calculation: 28.57 = (6000-2000) / (2000*7%).
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