An investment compounds annually at an interest rate of 12% What is the smallest investment period by which time the investment will more than triple in value? Choose one.
A) 11/10 ^n  B) log3/log1.12  C) (12/10)^n  D) 1.12^n  E) 1.12^n
Assume initial amount is x   Annual Interest is 34.1% so after 1 year the amount will become x * (100+12)/100 =&gt; x*1.12   now we need to find n for x * (1.12)^n = 3x therefor n = log3/log1.12   log3/log1.12
<result>B</result>
An investment compounds annually at an interest rate of 12% What is the smallest investment period by which time the investment will more than triple in value?