SOLUTION: Find out how many years it takes $7000 to triple if the money is invested at 4% compounded continuously. A=Pe^rt is the equation needed. show all steps.

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Question 868834: Find out how many years it takes $7000 to triple if the money is invested at 4% compounded continuously.
A=Pe^rt is the equation needed.
show all steps.
Answer by reviewermath(1029) About Me  (Show Source):
You can put this solution on YOUR website!
Q:
Find out how many years it takes $7000 to triple if the money is invested at 4% compounded continuously.
A:
We find t such that
7000e%5E%280.04t%29 = 21000, divide both sides by 7000
e%5E%280.04t%29 = 3, get the natural logarithm of both sides
0.04t = ln(3)
t = (ln(3))/0.04 = 27.4653 years (4 decimal places) or 27.47 years (2 decimal places)