If you open a savings account that earns 6.5% simple interest per year, what is the minimum num-ber of years you must wait to triple your balance? Suppose you open another account that earns 6%interest compounded yearly. How many years will ittake now to triple your balance?

If you open a savings account that earns 6.5% simple interest per year, what is the minimum num-ber of years you must wait to triple your balance? Suppose you open another account that earns 6%interest compounded yearly. How many years will ittake now to triple your balance?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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Question

If you open a savings account that earns 6.5%

simple interest per year, what is the minimum num-
ber of years you must wait to triple your balance?

Suppose you open another account that earns 6%
interest compounded yearly. How many years will it
take now to triple your balance?

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