A present value of $2600 is invested in an account with an annual interest rate of 4.1% . Determine the minimum amount of time required for the present value to triple, assuming the interest is compounded monthly. The minimum amount of time required is:

The minimum amount of time required is:

26.82 years.

Explanation:

Present value = $2,600

Future value = $7,800 ($2,600 * 3)

Annual interest rate = 4.1%

Monthly interest rate = 4.1%/12 = 0.342%

$2,600 will need to be invested for 321.781 (26.82 years) periods to reach the future value of $7,800.00.

FV (Future Value)$7,800.00

PV (Present Value)$2,600.00

N (Number of Periods)321.781

I/Y (Interest Rate)0.342%

PMT (Periodic Payment)$0.00

Starting Investment$2,600.00

Total Principal$2,600.00

Total Interest$5,200.00

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