Question 295933: how long, to the nearest year, will it take an investment to triple if it is continuously compunded at 5% per year? Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! how long, to the nearest year, will it take an investment to triple if it is continuously compunded at 5% per year?
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Continuous compounded interest formula:
A = Pe^(rt)
Where
A is accumulated sum after t time
P is initial principal
r is rate or interest
t is time
.
3P = Pe^(.05t)
Dividing both sides by P:
3 = e^(.05t)
Take the ln of both sides:
ln(3) = .05t
ln(3)/.05 = t
22 years = t
