document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=227831>Question 227831</A>: <I><SPAN STYLE=\"word-break: break-all;\"> This is a question given on my assignment and I have no idea where to go with it. Given information: A loan company offers money at 1.8% per month, compounded monthly and the nominal rate is 21.6%. How many years will it take an investment to triple itself if the nominal interest is compounded continuously? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #169243 by </B><A HREF=/tutors/aboutme.mpl?userid=nerdybill><B>nerdybill(7384)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=nerdybill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=nerdybill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=169243\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A loan company offers money at 1.8% per month, compounded monthly and the nominal rate is 21.6%. How many years will it take an investment to triple itself if the nominal interest is compounded continuously?<BR>\n" );
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document.write( "Use the \"continuous compound interest\" formula:<BR>\n" );
document.write( "A = Pe^(rt)<BR>\n" );
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document.write( "Let P = our initial investment<BR>\n" );
document.write( "then<BR>\n" );
document.write( "3P = Pe^(.018*12*t)<BR>\n" );
document.write( "3 = e^(.018*12*t)<BR>\n" );
document.write( "ln 3 = .018*12*t<BR>\n" );
document.write( "ln 3/(.018*12) = t<BR>\n" );
document.write( "5.086 years = t<BR>\n" );
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