SOLUTION: Please help me solve this problem.
A bank account earning continuously compounded interest doubles in value in 9 years. At the same interest rate, how long would it take the value
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A bank account earning continuously compounded interest doubles in value in 9 years. At the same interest rate, how long would it take the value
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Question 605120: Please help me solve this problem.
A bank account earning continuously compounded interest doubles in value in 9 years. At the same interest rate, how long would it take the value in the account to triple? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! A bank account earning continuously compounded interest doubles in value in 9 years. At the same interest rate, how long would it take the value in the account to triple?
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A(t) = P*e^(rt)
2P = P*e^(9r)
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e^(9r) = 2
(9r) = ln(2)
r = 0.077
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Solve:
3P = P*e^(0.077t)
e^(0.077t) = 3
0.077t = ln(3)
t = 14.27 years
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cheers,
Stan H.
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