Growth of an account

Question

How long will it take an investment to triple if interest is compounded continuously at 3%?

Answer 1

Investment growth with continuous compounding:

A(t) = Pe^rt

1. A(t) = investment value at time t = tripled = 3P
2. P = initial investment
3. r = rate = 0.03
4. t = time (years)

3P = Pe^0.03t

3 = e^0.03t

ln(3) = 0.03t

ln(3)/0.03 = t

Use your calculator to get the answer. The answer is in years. Round to 2 decimal places.