How long will it take for an investment to triple if interest is paid at 10% compounded continuously

Get the answer to your homework problem.

Try Numerade free for 7 days

Ohio State University

In order to continue enjoying our site, we ask that you confirm your identity as a human. Thank you very much for your cooperation.

Get it on Google Play Get it on Apple Store

How long will it take for an investment to triple if it is compounded continuously at 14%?

Let

P = the principal (the investment)

t = the time in years

r = 0.14 or 14% the annual interest rate

A = 3P the future value (the investment will triple)

the future value formula is:

A=Pe^(rt)

we plug the above values and get:

3P = Pe^(0.14t)

Pe^(0.14t) = 3P

........

click here to see all the equation solution steps

........

t = 7.85 years

It will take 7.85 years for the investment to triple.

1 Expert Answer

The compound interest formula is:

Where A is the current value, P is the initial investment, r is the rate, and t is time.

If an investment triples, that means A is currently equal to 3*P

Your interest rate is 5%, or, 0.05