SOLUTION: Need a little help here. Thanks!
If $5000 is invested at 4% how long will it take John to triple his investment if the compounding is continuous at the same rate?
Algebra.Com
Question 312448: Need a little help here. Thanks!
If $5000 is invested at 4% how long will it take John to triple his investment if the compounding is continuous at the same rate?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The formula to calculate future value, 
, of an investment, 
, at 
annual rate for 
years, where 
is the base of the natural logarithms and is expressed as a decimal fraction is:
Actually, you don't care what the initial investment is for this problem. All you care about is that the ratio 
, which is to say:
Take the natural log of both sides:
\ =\ \ln(3))
Use
\ =\ n\log_b(x))
\ =\ \ln(3))
Use
\ =\ 1)
)
but for your case 
, hence
}{0.04})
A (very) little calculator work and you have your approximate answer.
Compare your result here to the decision whether to take a Lotto Jackpot payment in 26 equal installments or to take half of the money in one lump sum.
John
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