If money doubles at a certain rate of interest compounded monthly in 6 years,how long will it take for the same amount of money to triple in value?
A)10.40 years
B)9.51 years
C)8.35 years
D)Cannot be determined

Question

Quizplus · Accepted Answer

If money doubles in 6 years, then the annual interest rate can be found using the formula:

2 = (1 + r/12)^(12*6)

Solving for r, we get:

r = 6.17%

Now, to find the time it takes for the money to triple, we can use the same formula but with a different target value:

3 = (1 + r/12)^(12*t)

where t is the time in years.

Solving for t, we get:

t = 9.51 years (rounded to two decimal places)

Therefore, it would take 9.51 years for the same amount of money to triple in value at the given interest rate.

If Money Doubles at a Certain Rate of Interest Compounded