SOLUTION: how long will it take to triple an investment of $5000 at 8% interest, compounded contiuously
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Question 250167: how long will it take to triple an investment of $5000 at 8% interest, compounded contiuously
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The future value, 
, of an investment with a present value 
at interest rate 
for 
years compounded continuously is given by:
If you want to triple the investment, then the future value must be three times the investment, i.e. 5000 becomes 15000, so:
Solve:
\ =\ \ln(e^{0.08t}))
\ =\ \ln(3))
But \ =\ 1)
so:
)
}{0.08})
You can do your own calculator work.
John
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