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.

## Answer This Question

## Related Questions

- business math - How long, to the nearest year, will it take an investment to ...
- Business Math - How long will it take a $400 investment to be worth $700 if it ...
- Pre- Cal - How long, to the nearest year, will it take me to become a ...
- Pre-Cal - If the interest on a long-term Canadian(3/8%) investment is compounded...
- Business math/Finite - How long to the nearest year, will it take an investment ...
- math - Approximately how long will it take an investment of $300 to triple, if ...
- Pre-Cal - This exercise is based on the following table, which lists interest ...
- Math - How much money, invested at an interest rate of r % per year ...
- Algebra - An investment grows according to the exponential equation y = 15,000...
- math - 1. You want to invest $10,000 dollars. How long will it take to double ...

More Related Questions