How long will it take for the money to triple? Compounded continuously.

Question

asked Apr 19, 2019 156k views

1 Answer

Wes Gamble · Answer 1 · 2019-04-25T04:43:45+0000

The formula for compounded continuously is :

A=Pe^(rt)

Here the Amount triples , so let us say the new amount A=3P

3P=Pe^(rt)

Cancelling P from both sides we get,

3=e^(rt)

Now here we are given rate is 2.75% or 0.0275,

3=e^(0.0275t)

solving for t we get

t=39.95 years