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compounded annuity solving for rate using logarithms

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If it takes 9 years for a one-time deposit in a savings account that receives interest compounded quarterly to triple, then what is the interest rate to the nearest tenth of a percent?

To answer this question, you will need to utilize the following relationship:

If ln(x) = N, where N is some number, then x = eN

(if using logarithms to the base 10, then equivalently,

If log(x) = N, then x = 10N )

Please show formula and steps.

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This post applies compounded annuity solving for rate using logarithms.

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Sandhya Sharma, MSc
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  • BSc, Meerut University
  • MSc, Meerut University
  • MPhil, Institute of Advanced Studies
  • MSc, AIT
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