(Round up to the next year.)
a. How many years does it take for $1 to become $3 at 5% interest compounded continuously?

b. How many years does it take for $1,000,000 to become $3,000,000 at 5% interest compounded continuously?

Question

(Round up to the next year.) 
a. How many years does it take for $1 to become $3 at 5% interest compounded continuously?

b. How many years does it take for $1,000,000 to become $3,000,000 at 5% interest compounded continuously?

Mercury · Answer

old question, but responding so this can be closed

a. continuously compounding formula: A = Pe^(rt) where P is the initial amount ($1), A is the final amount ($3), e is a constant (about 2.7 something, just use your calculator), r is interest rate as a decimal (0.05) and t is time (what you're solving for)

plug in and solve for t

b. same logic, same formula, plug in and solve