How do you do this ? Todd invests 7,000 dollars at an annual interest rate of 4.2% compounded continuously. Determine how many years, to the nearest 10th of a year, it will take for Todd’s investment to triple.
1 Answer
Your answer lies with a pert... and its 26.2 years (a long time)
Explanation:
The solution will be t , when A is three times Todd's initial investment. Do some math (3 * 7,000) and convert 4.2% into a decimal (4.2/100) and you get numbers to plug into our equation
Now solve for t
Divide both sides by 7,000
Rewrite this as a Logarithmic equation.
Now remember that a Log with the base of e can also be written as LN or the Natural Log.
So,
Divide both sides by .042
and as Per (see what I did there) the problem asks, round off to the first decimal place.