How long will it take $4000 to triple if it is invested at 5% compounded continuously?
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Formula of compound interest is
A=Pe^rt
where A =current
P=initial investment
r=rate
t=time
so,
r=5% or 0.05
3p=pe^0.05*t
3=e^0.05*t
in(3)=0.05*t
t=in(3)/0.05
t=~22 years
Hope it helps
A=Pe^rt
where A =current
P=initial investment
r=rate
t=time
so,
r=5% or 0.05
3p=pe^0.05*t
3=e^0.05*t
in(3)=0.05*t
t=in(3)/0.05
t=~22 years
Hope it helps
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