Posted by **Jannet** on Wednesday, February 29, 2012 at 3:35am.

How long, to the nearest year, will it take an investment to triple if it is continuously compounded at 18% per year?

I used A=Pe^rt to get the wrong answer 20 years. Don't understand what is wrong

Thanks

- Math -
**Steve**, Wednesday, February 29, 2012 at 12:27pm
3P = Pe^.18t

3 = e^.18t

ln3 = .18t

1.0986 = .18t

t = 6.10

This makes sense, considering the rule of 72, which states that at r%, the amount doubles about every 72/r years.

So, we expect this to double every 4 years.

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