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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