To triple $1 million, Mika invested today at an annual rate of return of 9 percent. How long will it take Mika to achieve his goal?
  • a)
    15.5 years
  • b)
    13.9 years
  • c)
    12.7 years
  • d)
    10 years
Correct answer is option 'C'. Can you explain this answer?

CA Foundation Question

VIKAS KUMAR answered Apr 11, 2020
FV=PV(1+k)n
(3)(1,000,000)=1,000,000(1.09) n
ln(3)=(n)ln(1.09)
n=12.7 years
Or using a financial calculator (TI BAII Plus),
I/Y=9, PV= –1,000,000, PMT=0, FV=3,000,000, CPT N=12.7 years
option "C" 

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