SOLUTION: you want to invest $5,000 dollars. How long will it take to triple your original investment at an annual interest rate of 4% compounded continuously? (round your answer to the near

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Question 886038: you want to invest $5,000 dollars. How long will it take to triple your original investment at an annual interest rate of 4% compounded continuously? (round your answer to the nearest year)
A=Pe^rt
Answer by josgarithmetic(39615) About Me  (Show Source):
You can put this solution on YOUR website!
Your basic goal is to know for how much time the initial amount will become tripled. You do not need to know the $5000 investment initial amount. For what time t will A=3P?

A=Pe%5E%28rt%29
3P=Pe%5E%28rt%29
3=e%5E%28rt%29
ln%283%29=ln%28e%5E%28rt%29%29
ln%283%29=rt%2A1
highlight%28t=ln%283%29%2Fr%29 this is your fundamental solution in symbolic form. Now, r=0.04. One computation using a logarithm and division and solved for t.



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27 years