Question
Use the model $A=P e^{r t} .$ The variable $A$ represents the future value of $P$ dollars invested at an interest rate $r$ compounded continuously for $t$ years.If $\$ 10,000$ is invested in an account earning $5.5 \%$ interest compounded continuously, determine how long it will take the money to triple. Round to the nearest year.
Step 1
5\%$ or $0.055$ in decimal form, and we want to find the time $t$ it takes for the money to triple, i.e., $A=3P=30,000$. Show more…
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