Question
A financial analyst tells you that investing in stocks will allow you to triple your money in 15 years. What annual rate of return is the analyst assuming you can earn?
Answers
Reiny
(1+i)^15 = 3
log both sides
log((1+i)^15) = log3
15 log (1+i) = log3
log 1+i = log3/15
1+i = 1.07598
i = .07598
You would have to earn about 7.6 % a year to triple your money in 15 years
log both sides
log((1+i)^15) = log3
15 log (1+i) = log3
log 1+i = log3/15
1+i = 1.07598
i = .07598
You would have to earn about 7.6 % a year to triple your money in 15 years