5000 is invested at 5 interest compounded continuously How l

$5,000 is invested at 5% interest compounded continuously. How long will it take for this investment to triple? Find the exact expression for t. Do not evaluate.

Solution

We have to use the following formula

A=P e^rt

Here principal,P=$5000

Amount ,A=3 * 5000=15000

rate of interest,r=5%=.05

15000=5000 e^{.05 t}

3=e^.05t

Taking ln on both sides

ln 3= .05 t

t= (ln 3)/.05