PreCal
posted by Nick on .
If the interest on a longterm Canadian(3/8%) investment is compounded continuously, how long will it take the value of an investment to triple? (Give the answer correct to two decimal places.)
Got 19 yearsits wrong, can't find reason.
Thanks.

With continuous compounding,
A = A0*e^(r*t) = 3 A0
where A0 is the inityial principle,
r is the annual interest rate (0.375%)
t is the period of investment, in years.
e^(rt) = 3
rt = ln3 = 1.099
t = 1.099/0.00375 = 293 years
That's a pretty bad investment. Worse that US long term treasuries at current rates.