A=Pe rt , to find how long it will take $1500 to triple in value it is is invested at 12% interest, compounded continuously.

Answer 1

Given:

r=12%=.12

P=$1500

A=$1500(3)=$4500

Find t.

Formula is A=P•e^rt

A= Final amount

P=Principal or the starting amount

r=Annual interest rate

t=Time in years

4500=1500e^0.12t

4500/1500 = e^0.12t

3 = e^0.12t

ln(3) = 0.12t

ln(3)/0.12 = t

t ≈9.16 years