How long will it take for an investment to triple if interest is paid at 10%, compounded continuously?
A) 30 years
B) 3 years
C) 8.6 years
D) 11 years
E) none of these

Question

Quizplus · Accepted Answer

To find the time it takes for an investment to triple with continuous compounding, use the formula $ t = \frac{\ln(3)}{r} $. With $ r = 0.10 $, $ t = \frac{\ln(3)}{0.10} \approx 10.986 $ years, which is approximately 11 years.

How Long Will It Take for an Investment to Triple