2000 is invested at 7% annual interest, compounded monthly. When will the balance triple?

15.7 years

Step-by-step explanation:

Since we were asked how much it would take the principal (2000) to be tripled, we would triple it i.e 2000 × 3 = 6000

To find the time required, t, we would be making use of the equation below

Where FV is the tripled principal

P is the Principal = 2000

r is the percentage Interest = 7% i.e 0.07

n is the number of months that the principal is deposited I.e annually = 12 months

Fixing in the parameters, we have

Dividing both sides of the equality sign would give us

Taking ㏒ of both  sides of the equality sign

㏒() = ㏒()

㏒()  = () (㏒)

Therefore = 15.7 years