SOLUTION: How long, to the nearest year, will it take an investment to triple if it is continuously compounded at 16% per year?
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Question 354040: How long, to the nearest year, will it take an investment to triple if it is continuously compounded at 16% per year?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
The future value, 
, of a present value, 
, invested at 
percent interest for 
years compounded continuously is given by:
For the investment to triple, 
, but since 
, since we know that 
, we just need to solve:
for
Take the natural log of both sides:
\ =\ \ln(3))
Use )
and \ =\ 1)
\ =\ \ln(3))
}{.016})
The rest is just calculator work.
John
My calculator said it, I believe it, that settles it
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