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What rate of interest compounded annually is required to triple an investment in 20 years?

The rate of interest required is %?

 Jul 14, 2017
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(1 . x)^20 = 3

20 ln (1 .x) = ln 3

ln (1 .x) = (ln 3)/20  =  0.0549306

 

( 1 .x) = e^0.549306 = 1.0564

x = 0.0564.

 

Answer is  5. 64 %

 Jul 14, 2017

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