SOLUTION: If interest is compounded continuously and the interest rate is tripled, what effect will this have on the time required for an investment to double?

Question 301722: If interest is compounded continuously and the interest rate is tripled, what effect will this have on the time required for an investment to double?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If interest is compounded continuously and the interest rate is tripled, what effect will this have on the time required for an investment to double?
-----------
Let interest be "r":
A(t) = P*e^(rt)
Doubles when e^(rt) = 2
rt = ln2
t = (ln(2))/r
-----
Let interest be "3r"
A(t) = P*e^(3rt)
Doubles when e^3rt = 2
3rt = ln2
t = (1/3)(ln(2))/r
---------
The time when the rate was "r" is divided by 3.
==================================================
Cheers,
Stan H.
==================================================
RELATED QUESTIONS
Doubling Time: If interest is compounded continuously and the interest rate is tripled,... (answered by stanbon)

If $2711 is invested into a savings account and compounded continuously, what interest... (answered by jim_thompson5910)

What rate of interest is required to triple an investment in 12 years if the interest is... (answered by lwsshak3)

If you invest $2,500 in an account, what is the time that will take you to get $2,571 if... (answered by Theo,MathTherapy)

find the amount of time required for an investment to double at a rate of 9.5%. if the... (answered by ewatrrr)

what is the interest earned on $15,000 for four years at an interest rate of 3.5%... (answered by robertb)

If the time a ball is allowed to roll on an inclined plane is tripled, what effect does... (answered by Alan3354)

An investor with interest compounded continuously doubled in 15yr. What is the interest... (answered by edjones)

An investment with interest compounded continuously doubled itself in 10 years. What is... (answered by josgarithmetic)