If average stock portfolio would yield 2.1% per annum then how much time would it take...

If average stock portfolio would yield 2.1% per annum then how much time would it take for a portfolio to increase 3 times in value if all proﬁts are reinvested? State the answer as a number with 2 decimals (for example, 13.02).

Expert Solution

Ans 52.86 years

FV =	Future Value
PV =	Present Value
r =	rate of interest
n=	no of period


FV/ PV =	(1 + r )^n
3 / 1 =	(1 + 2.1%)^n
3 =	(1 + 2.1%)^n
3 =	1.021^n
n =	52.86 years

jeff jeffy answered 3 years ago

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