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

Answer 1

the normal equation is

A=Pe^rt

but now you want to find how long it'll take for your initial investment (P) to triple.

so in this case the new tweaked equation would be

3P=Pe^rt
from here all you do is just try to isolate the t

Divide both sides by P
and you get

3=e^rt

If I'm not mistaken getting the "ln"of both sides would would reduce the e on the right side to 1 since ln(e)=1 leaving you with
ln3=rt and then all you do is divide both sides by r and get

ln(3)/ r= t

which remember to have r in decimal format.

Answer 2

if you have questions about the answer or something, let me know