Question

If it takes 10 years for money to double in an account that is compounded continuously, how many years will it take money to triple in that same account?

Answer 1

15.85 years

Explanation:

The 10-year multiplier is 2, so the account value multiplier is ...

2^(t/10)

We want to find t such that this multiplier is 3.

3 = 2^(t/10)

log(3) = (t/10)log(2)

10(log(3)/log(2)) = t ≈ 15.85 . . . years

Money in the same account will triple in about 15.85 years.