Akeem invests $25,000 in an account that pays 4.75% annual interest compounded continuously. Using the formula A=Pe^rt, where A=the amount in the account after t years, P=principal invested, and r=the annual interest rate, how many years, to the nearest tenth will it take Akeem’s investment to triple?
SHOW WORK!
a) 10.0
b) 14.6
c) 23.1
d) 24.0

Question

Akeem invests $25,000 in an account that pays 4.75% annual interest compounded continuously. Using the formula A=Pe^rt, where A=the amount in the account after t years, P=principal invested, and r=the annual interest rate, how many years, to the nearest tenth will it take Akeem’s investment to triple?
SHOW WORK!
a)	10.0
b)	14.6
c)	23.1
d)	24.0

kropot72 · Answer

$$75000=25000\times e ^{0.0475t}$$
$$\frac{75000}{25000}=3=e ^{0.0475t}$$
0.0475t = Ln 3
$$t=\frac{\ln 3}{0.0475}$$
Can you now calculate the answer?