Question

ALGEBRA 2 - Exponential and Logarithmic Functions

John invests $25,000 in an account that pays 4.75% annual interest compounded continuously. How many years, to the nearest tenth, will it take for John’s investment to triple?

Answer 1

The equation you would use to solve this problem is:

A = P * e^(rt)

Where A is the final amount, P is the initial amount, r is the interest rate, and t is the number of years.

We can rearrange the equation to solve for t:

t = (ln(A/P)) / r

Plugging in the values we know:

t = (ln(3*25000/25000)) / (0.0475)

t = (ln(3)) / (0.0475)

t = 4.93 years

So it will take about 4.9 years for John's investment to triple, to the nearest tenth.

Explanation: