Question

You have invested $600 in a microfinance project. You receive 6.3% interest year, compounded continuously. How long will it take your money to triple? Round your answer to the nearest whole number.

Answer 1

if you want to made the triple then you want to have:

`600\cdot3=1800`

Now we can replace that in the interest equation so:

`1800=600(1+6.3)^t`

Where t are the number of years so we solve for t so:

`\begin{gathered} (1800)/(600)=7.3^t \\ \ln (3)=t\ln (7.3) \\ t=(\ln(3))/(\ln(7.3)) \\ t=(1.10)/(1.99) \\ t=0.55 \end{gathered}`

so in 0.55 years he will have the triple of the money, and to the neasres whole number will be in one year