Money grows by 5% per year (compound): A = A0(1.05)^t. About how many years until it becomes 3 times as much? (use logarithms)

  1. 22.5 years
  2. 20.5 years
  3. 40.0 years
  4. 24.5 years
Answer

A) 22.5 years

(1.05)^t = 3 Rightarrow t = log 3log 1.05 approx 22.5 years. SLO M-09-A-08 · Application

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