SOLUTION: how long will it take money to triple if it is invested at 5% compounded daily? 6% compounded continuously
Algebra.Com
Question 609183: how long will it take money to triple if it is invested at 5% compounded daily? 6% compounded continuously
Found 2 solutions by solver91311, lwsshak3:
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
^{nt})
And you want 
, hence
^{nt}\ =\ 3)
where 
and 
take the log (base doesn't matter) of both sides:
^{nt}\ =\ \log(3))
Use the laws of logs
\ =\ \log(3))
}{n\log\left(1\ +\ \frac{r}{n}\right)})
Just plug in your given values and do the arithmetic on your calculator.
John
My calculator said it, I believe it, that settles it
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
how long will it take money to triple if it is invested at 5% compounded daily? 6% compounded continuously.
**
Compound interest formula for daily compounding:
A=P(1+r)^n, P=initial investment, r=interest rate per period, n=number of periods, A=amt after n periods.
For given problem:
A=P(1+r)^n
A/P=(1+r)^n=3
(1+.05/365)^n=3
(1+.000137)^n=3
(1.000137)^n=3
take log of both sides
nlog(1.000137)=log3
n=log3/log(1.000137)
n≈8020
n=8020/365≈21.97≈22 yrs
..
Compound interest formula for continuous compounding:
A=Pe^rt, P=initial investment, r=interest rate per year, t=number of years, A=amt after t years.
A/P=e^rt=3
e^.06t=3
take log of both sides
.06t*lne=ln3
lne=1
.06t=ln3
t=ln3/.06≈18.31≈18 yrs
RELATED QUESTIONS
How long will it take $4000 to triple if it is invested at 5% compounded... (answered by Alan3354)
how long would it take a money to double if it is invested at 7 % compounded daily? 8.3 % (answered by nerdybill)
How long will it take money to double if it is invested at 21% compounded continuously?... (answered by Fombitz)
How quickly will money triple if it is invested at 7% interest compounded... (answered by MathLover1)
Approximately how long will it take for your money to triple if it is invested at 4.5%... (answered by stanbon)
$2000 dollars was invested into the account at 3% for 5 years. How long will it take for (answered by ewatrrr)
. How long will it take for a sum of money to triple in value if invested at an annual... (answered by jorel1380)
How long will it take for a sum of money to triple in value if invested at an annual rate (answered by ankor@dixie-net.com)
How long will it take money to double if it is invested at an interest rate of 6.5%... (answered by solver91311)
