Question

Bob invests $25,000 in an account that pays 4.75% annual interest compounded continuously (so r = 0.0475). How many years will it take for his investment to triple (set=$75000)? Round to the nearest tenth of a year: x years

Answer 1

Answer:

x=23.7 years

Step-by-step explanation:

Investment= $25000

Interest rate= 4.75% annual compounded

Target amount= $75000

Investment duration= x years

• 25000*(1+0.0475)ˣ=75000
• 1.0475ˣ=75000/25000
• 1.0475ˣ=3
• x= log₁.₀₄₇₅(3) = 23.7 years