How many quarters will it take to triple an initial investment at an interest rate of 14% compounded quarterly?

How many quarters will it take to triple an initial investment at an interest rate of 14% compounded quarterly?
Answer:
Future value = Present value*(1+r/m)^mt
where r is the interest rate, m is the number of compounding
periods in a year
t is the time period
r = 14%, m = 4
Future value = 3*Present value
3 =( (1+(.14/4))^(4t))
Solving for the equation in excel
4t = 32
t = 8 years
number of quarters = 32
Asked on February 15, 2018 in economics.
Add Comment
0 Answer(s)
  • Votes
  • Oldest

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.