Question

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

Answer 1

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