Answer:
25.85 years
Step-by-step explanation:
Use the formula for continuous compounding amount:
A = Pe^(r*t), where r is the interest rate as a decimal fraction, P is the initial amount, and t is the time in years.
Here we have:
A = $200e^(0.0425*t) = 3($200) (this is triple the original amount)
Solve this for t. Divide both sides by $200 and then use natural logs:
1e^(0.0425*t) = 3
Then 0.0425*t = ln 3 = 1.0986
Dividing both sides by 0.0425 will isolate t:
1.0986
t = --------------- = 25.85 years
0.0425
