Posted by **Nick** on Wednesday, February 29, 2012 at 3:45am.

If the interest on a long-term 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 years--its wrong, can't find reason.

Thanks.

- Pre-Cal -
**drwls**, Wednesday, February 29, 2012 at 5:26am
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.

## Answer This Question

## Related Questions

- Pre-Cal - This exercise is based on the following table, which lists interest ...
- calculus - How long will it take an investment to triple in value if the ...
- calculus - How long will it take an investment to triple in value if the ...
- alegbra - How long will it take for an investment to triple in value if it earns...
- math - Approximately how long will it take an investment of $300 to triple, if ...
- Math - exponential function - If an account that earns interest compounded ...
- Algebra ASAP - Suppose that $17,000 is invested in a savings account paying 5.1...
- math - How long will it take for an investment of $13,000 to double if the ...
- How long will it take the investment to double? - $3,600 is invested in an ...
- Pre-Cal - This exercise is based on the following table, which lists interest ...

More Related Questions