Anwar invested $2500 at 4% compounded semiannually. In how many years will Anwar's investment have tripled? Round your answer to the nearest tenth of a year.
A) 3.5 years
B) 4.2 years
C) 27.5 years
D) 27.7 years

Question

Quizplus · Accepted Answer

To find the time it takes for the investment to triple, use the formula for compound interest: A = P(1 + r/n)^(nt). Here, A = 3P, P = $2500, r = 0.04, n = 2. Solving for t gives approximately 27.7 years.

Anwar Invested $2500 at 4% Compounded Semiannually