Question

How long will it take for the money to triple? Compounded continuously.

Answer 1

The formula for compounded continuously is :

$A=Pe^{rt}$

Here the Amount triples , so let us say the new amount A=3P

$3P=Pe^{rt}$

Cancelling P from both sides we get,

$3=e^{rt}$

Now here we are given rate is 2.75% or 0.0275,

$3=e^{0.0275t}$

solving for t we get

t=39.95 years