Solve the problem.
-How long will it take for an investment to triple in value if it earns 11.5% compounded continuously? Round your answer to three decimal places.
A)10.024 yr
B)6.027 yr
C)9.553 yr
D)4.777 yr

Question

Quizplus · Accepted Answer

To find the time it takes for an investment to triple with continuous compounding, use the formula $ t = \frac{\ln(3)}{r} $, where $ r $ is the interest rate. Here, $ r = 0.115 $. Calculating gives $ t = \frac{\ln(3)}{0.115} \approx 9.553 $ years.

Solve the Problem. -How Long Will It Take for an Investment to Triple