<PRE><B>Question 227831</B>
A loan company offers money at 1.8% per month, compounded monthly and the nominal rate is 21.6%. How many years will it take an investment to triple itself if the nominal interest is compounded continuously?
.
Use the &quot;continuous compound interest&quot; formula:
A = Pe^(rt)
.
Let P = our initial investment
then
3P = Pe^(.018*12*t)
3 = e^(.018*12*t)
ln 3 = .018*12*t
ln 3/(.018*12) = t
5.086 years = t
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