How long it take for long term investment that earns a 8.5% to triple?

Answer 1

Nana, thanks for asking,“How long it take for long term investment that earns a 8.5% to triple?”

I would recommend the inquirer to create an Excel spreadsheet with the first column representing time, the next column representing principal, the next interest earned, and the fourth column to represent principal plus accumulated earnings at the end of each year. See the below example.

Beg of Yr	Prin	Rate	Prin+Acc. Int.	End of Yr
0	1000	1.085	1085.00	1
1	1085	1.085	1177.23	2
2	1177.23	1.085	1277.29	3
3	1277.29	1.085	1385.86	4
4	1385.86	1.085	1503.66	5
5	1503.66	1.085	1631.47	6
6	1631.47	1.085	1770.14	7
7	1770.14	1.085	1920.60	8
8	1920.60	1.085	2083.86	9
9	2083.86	1.085	2260.98	10
10	2260.98	1.085	2453.17	11
11	2453.17	1.085	2661.69	12
12	2661.69	1.085	2887.93	13
13	2887.93	1.085	3133.40	A little over 13 years

As you can see the principal with 8.5% earnings at the end of the first year is $1085.00. Likewise, the accumulated principal with earnings available for earnings at the beginning of the second year is now $1085. This can be repeated from the first year until you determine when, if ever, the principal and accumulated earnings exceed $3,000. Sometime during the 13^th year the investment will reach your goal.

Nana, I would welcome you at anytime to become a full-time student who I would mentor in accounting or excel spreadsheet analysis. Have a great day and thanks for asking!