SOLUTION: Find the final amount of a $200 investment after 18 years at 7.3% annual interest compounded continuously. How long will it take for the initial investment to triple?
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Question 831034: Find the final amount of a $200 investment after 18 years at 7.3% annual interest compounded continuously. How long will it take for the initial investment to triple? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Find the final amount of a $200 investment after 18 years at 7.3% annual interest compounded continuously.
A(t) = P*e^(rt)
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A(18) = 200*e^(0.073*18) = $744.21
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How long will it take for the initial investment to triple?
Solve: e^(0.073t) = 3
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0.073t = ln(3)
t = 15.05 years
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Cheers,
Stan H.
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