Homework Help Forum: calculus

Posted by helpless on Friday, November 6, 2009 at 1:25am.

How long will it take an investment to triple in value if the interest rate is 4% compounded continuously? i know its set up as 3x=x(e^rt) but im confused as what to do nxt

• calculus - drwls, Friday, November 6, 2009 at 4:58am

  3x = x*(e^rt) is correct, and in this case r = 0.04. Take the natural logarithms of both sides of the equation. ln 3 + ln x = ln x + rt The x terms drop out. t = ln3/r = 1.0986/0.04 = 27.46 years

  
  

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