Question

Find how many years it takes for money to triple when invested at an annual interest rate of 4.3% compounded continuously. That’s the entire question and I’m not quite sure what to do?

Answer 1

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Answer:

25.5 years

Explanation:

The multiplier for continuous compounding at annual rate r for t years is ...

e^(rt)

You want the value of t when that is 3 and r=0.043.

3 = e^(0.043t)

ln(3) = 0.043t

t = ln(3)/0.043 ≈ 25.549 . . . . years