Question

You have invested $600 in a microfinance project. You receive 6.3% interest year, compounded continuously. How long will it take your money to triple? Round your answer to the nearest whole number.

Answer 1

if you want to made the triple then you want to have:

$600\cdot3=1800$

Now we can replace that in the interest equation so:

$1800=600(1+6.3)^t$

Where t are the number of years so we solve for t so:

$\begin{gathered} \frac{1800}{600}=7.3^t \\ \ln (3)=t\ln (7.3) \\ t=\frac{\ln(3)}{\ln(7.3)} \\ t=\frac{1.10}{1.99} \\ t=0.55 \end{gathered}$

so in 0.55 years he will have the triple of the money, and to the neasres whole number will be in one year