How long will it take for an investment to triple if interes
How long will it take for an investment to triple if interest is paid at 10%, compounded continuously?
Solution
The formula of amount compounded countinuously is
A=p *e^(r*t)
let the principal amount be $x. And after t years it becomes three times that is 3x
3x=x*e^(10t)
3=e^(10t)
taking ln on both sides
ln 3= .10t
t= ln3/.10= 10.99 that is approx 11
