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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 %? (Round to 2 decimal places as needed)

 Jul 14, 2017
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FV=PV[1+R]^N

$3=$1[1+ R]^20 take the 20th root of both sides

3^(1/20) = 1 + R

1.056467 = 1 + R  subtract 1 from both sides.

R =0.0565 x 100

R=5.65% -  annual interest rate required to triple your money in 20 years.

 Jul 14, 2017

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