SOLUTION: If $2711 is invested into a savings account and compounded continuously, what interest rate is required for the investment to triple in 53 years?

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Question 760623: If $2711 is invested into a savings account and compounded continuously, what interest rate is required for the investment to triple in 53 years?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Note: the initial amount invested has NO affect on the answer. You can change 2711 to any number you want and the answer will be the same.

A = Pe^(r*t)

3P = Pe^(r*t)

3P = Pe^(r*53)

3P/P = Pe^(r*53)/P

3 = e^(r*53)

ln(3) = ln(e^(r*53))

ln(3) = 53r*ln(e)

ln(3) = 53r*1

ln(3) = 53r

53r = ln(3)

r = ln(3)/53

r = 1.0986122886681/53

r = 0.02072853374846

The interest rate must be roughly 2.07285%